Investors are expressing concerns over Hashi Corporation’s planned sale to IBM as the price dropped by nearly 1%, with rumors circulating that the Federal Trade Commission may require more information before approving the deal. The FTC is looking into the potential impact of the acquisition on competition and innovation in cloud software and encryption tools, prompting worries that customers may struggle to find alternatives to HashiCorp’s products after the transaction. While the Justice Department is reportedly prepared to allow the deal to proceed, the FTC has yet to complete its review, leading IBM to resubmit its notification to regulators in order to provide additional time for scrutiny. IBM’s $35 per share cash offer to acquire Hashi Corporation was announced in late April, but uncertainties surrounding antitrust approval have put pressure on the stock price.
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