action and the start of a CMA merger inquiry. ![]() officials issued second requests.ĭuring recent failed attempts by Illumina to buy Pacific Biosciences and Sabre to take over Farelogix, as well as Stryker’s successful acquisition of Wright Medical, up to four-and-a-half months elapsed between the U.S. In several recent transactions, the CMA only got involved some months after U.S. review does give the UK watchdog more time to decide whether to formally investigate the deal. Some third parties have complained to DOJ that the transaction could have exactly that effect.īut even if the CMA is considering calling in the merger-the authority’s jurisdictional reach is notorious-the merging parties’ relatively limited presence in the UK make establishing a viable theory of foreclosure harm all the more challenging. That theory of harm has drawn scrutiny from DOJ, where agency staff attorneys in the days leading up to the February 16 second request evaluated the merging parties’ respective market positions, and whether the deal would give Salesforce the ability and incentive to degrade competitors’ integrations with Slack in order to benefit its own market-leading CRM suite. ![]() Those market shares could mean that the deal would create less risk of post-merger foreclosure in the UK than it might in the U.S. There, the authority estimated that Salesforce commanded just a 10-20% share of supply in UK’s CRM market-less than its 20-30% share on a worldwide basis. The CMA recognized that dynamic in a 2019 decision approving Salesforce’s acquisition of Tableau Software. Salesforce, meanwhile, also controls a relatively small share of the UK CRM software market. In attempting to assuage the authority’s potential concerns, Salesforce can argue Slack has only a minor presence in the UK, deriving most of its revenue across the pond. The CMA is viewed as much more aggressive than its continental and U.S. Successfully bypassing a CMA investigation would be a further boon for Salesforce after the company earlier this week secured quick-fire competition clearances in Germany and Austria for the Slack tie-up. The San Francisco-based customer relationship management (CRM) company is said to have engaged closely with the CMA and told the UK watchdog that it shouldn’t review the deal because it doesn’t meet the test for establishing the enforcer’s jurisdiction, and even if it did, there’s no reason to suspect the merger would harm competition. DOJ’s recent decision to open an in-depth, second request review into the transaction. “Slack is our focus.Salesforce (CRM) is said to remain confident of avoiding a UK Competition and Markets Authority probe into its planned $27.7 billion acquisition of messaging platform Slack (WORK) despite the U.S. “We don’t have plans for any material M&A in the near term,” Taylor said. On the same call, Bret Taylor, who was promoted to co-CEO of Salesforce in 2021, said no other big acquisitions are in the pipeline. Salesforce stock jumped more than 3% in response. This was also above consensus analyst estimates of $31.8 billion. Salesforce updated its guidance for the 2023 fiscal year to around $32 billion in revenue, which would be a 21% increase on the $26.5 billion it made in 2022. Every segment of its business-Sales, Service, Platform (which now includes Slack), Marketing & Commerce, and Data-accounted for at least $1 billion revenues for the first time in company history. Salesforce enjoyed a strong finish to the financial year across the board, generating total revenues of $7.3 billion in its final quarter of 2022, an increase of 26% year-on-year. On a call with analysts on Tuesday, the company reaffirmed its commitment to integrating its products with Slack. ![]() Salesforce is also continuing to integrate Slack with its other products. In September 2021, it unveiled an initial set of integrations, offering users new ways to access Salesforce Sales, Service, and Marketing Clouds from the team collaboration app, as well analytics tool Tableau.
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