IBM, in order to gain unconditional EU accounted for $34 billion in the Red Hat deal: sources

FILE PHOTO: A man stands in the vicinity of an IBM logo at the Mobile World Congress in Barcelona, Spain, February 25, 2019 at the latest. REUTERS/Sergio Perez/Photo File

BRUSSELS (Reuters) – U.S. tech giant International Business Machines Corp. is set to secure unconditional EU approval for its $34 billion bid for the software company, Red Hat, people familiar with the matter said on Wednesday.

IBM aims to expand the subscription-based software offerings over the deal, which is the largest to date, compared to delaying the sale of the software, and the decreasing demand for mainframe servers as well.

It would also help you to catch up with Amazon, the Alphabet, Inc., and Microsoft in the fast-growing cloud-computing business.

The European Commission is scheduled to decide on the deal by June 27, and IBM declined to comment.

Founded in 1993, Red Hat has been specializing in the Linux operating system, the most popular form of open-source software and is an alternative to proprietary software from Microsoft.

The united states regulatory authorities gave the go-ahead for the deal last month, without demanding the concessions.

Reporting by Foo Yun Chee; Editing by Alissa de Carbonnel and Elaine Hardcastle

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