FTC Requests More Information on $6.4B IBM Planned Acquisition of HashiCorp

The Federal Trade Commission (FTC) has made a "second request" for further accusation astir IBM's (IBM) scheme to get unreality package institution HashiCorp (HCP) for $6.4 billion.

HashiCorp said Monday that it received nan petition past week, and nan companies scheme to "promptly respond to nan Second Request and to proceed moving cooperatively pinch nan FTC." IBM and HashiCorp still expect nan acquisition to beryllium completed by nan extremity of 2024, according to a filing pinch nan Securities and Exchange Commission (SEC).

FTC Assessing Competitive Impacts of Deal

The FTC defines a "second request" arsenic portion of nan woody monitoring process that "typically asks for business documents and information that will pass nan agency astir nan company's products aliases services, marketplace conditions wherever nan institution does business, and nan apt competitory effects of nan merger."

HashiCorp did not disclose what accusation aliases documents nan agency requested, but nan reappraisal suggests nan FTC could person concerns astir whether nan acquisition would beryllium harmful to title successful nan unreality computing space.

The woody was primitively announced successful April, pinch nan sides besides stating astatine nan clip that it was expected to adjacent by nan extremity of 2024. IBM said successful announcing nan woody that it was nan adjacent measurement successful nan company's "deep attraction and finance successful hybrid unreality and AI."

Latest successful String of FTC Investigative Moves

Under nan Biden administration, nan FTC has stepped up its enforcement efforts, taking a much stringent attack to antitrust policy under Chair Lina Khan.

Energy giants Marathon Oil (MRO) and ConocoPhillips (COP) said Friday that they had precocious received a 2nd petition from nan FTC complete a woody announced successful May that would spot ConocoPhillips salary $22.5 cardinal to get Marathon.

IBM shares were up little than 1% astatine $184.35 arsenic of astir 11:45 a.m. ET Monday. HashiCorp banal was down little than 1% arsenic $33.44.