EU has expressed concern over Intel/McAfee deal

The $7.68bn (£4.96bn) deal may take longer than expected to complete due to EU concerns

Intel's massive $7.68bn (£4.96bn) deal to acquire security software firm McAfee may end up being significantly delayed due to European officials expressing concern over the transaction, according to a report in The Wall Street Journal.

This comes after the European Union's antitrust regulator's preliminary review of the deal, which focused on Intel's plans to embed security features into its microprocessor chips. It is believed this will create problems for McAfee's rivals.

The European Commission reportedly has particular worries about how the security functions are going to be embedded into the chips, and whether, because Intel has such a big share of the market at about 80 per cent, this would exclude other security software companies from incorporating software at this level.

Andrew Kellett, senior analyst at Ovum, said: "Other security vendors will want to ensure they can trade on a level playing field, but also that they have some input into changes going forward. They want to make sure McAfee doesn't benefit from internal discussion with Intel," he added.

Intel controls approximately 80 per cent of microprocessors used in PCs worldwide, and this deal would be the largest in its 42-year history.

"This has been very frustrating. Intel talks about the high level benefits, it talks about the great future, but it hasn't confirmed the details of the new relationship," said Kellett.

"In terms of whether we will see more deals such as this in future from other firms, there is no other Intel. At this sort of level it is a one-off," he added.

Both McAfee and the European Commission refused to comment to The Wall Street Journal.