NEW YORK (TheStreet) -- Shares of EMC (EMC) were increasing in early morning trading on Tuesday as Chinese regulators are expected to approve Dell's $63 billion purchase of the Hopkinton, MA-based information infrastructure technology company, according to the New York Post.
Dell said the deal, which is considered the largest technology merger in history, could close anytime between this month and January 2017. Dell CEO Michael Dell spoke to Chinese regulators and succeeded in receiving quick approval, the Post reports.
The Chinese approval is likely to be the last step in closing the deal, as The Round Rock, TX-based consumer PC giant has already raised approximately $50 billion in debt financing for the acquisition, received other regulator approvals and garnered EMC shareholder approval.
With the deal, Dell will also gain access to EMC's 80% stake in the virtualization and cloud infrastructure solutions company VMWare (VMW).
EMC shares are expected to grow to $30 once the deal is final, the Post added.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate EMC CORP/MA as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
You can view the full analysis from the report here:
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