Market Commentary

EU Antitrust Regulators Approve Cisco's Acquisition of Splunk

Jahanzeb Salam
15 Mar 2024 · 1 minute read

Cisco Systems (CSCO:US) recently received unconditional approval from EU antitrust regulators for its $28 billion acquisition of cybersecurity firm Splunk (SPLK:US) on Wednesday. The European Commission stated that they did not identify any competition issues with the deal.

The Commission's assessment concluded that the transaction would not pose competition concerns, as it would not significantly affect competition in the relevant markets due to the presence of numerous alternative players.

This acquisition, announced last year, marks Cisco's largest-ever deal and is intended to bolster its software business amidst a surge in artificial intelligence. Additionally, it aims to counteract a slowdown in demand following the pandemic.

The EU competition watchdog further emphasized that the merged company would not have the capability to exclude competitors. Reports also indicate that the deal would proceed without any conditions imposed by the EU competition authority.

In terms of investor confidence, Congressman Ro Khanna, a lawmaker from California notably expanded his investment in the technology firm in February. He purchased nearly $115,000 worth of CSCO shares, reflecting his increased confidence in the company.