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US regulators approve Lenovo's acquisition of IBM's x86 server division

All go for Lenovo after US go slow doesn't trigger a no-no
Mon Aug 18 2014, 11:52
IBM server

UNITED STATES REGULATORS have cleared the sale of IBM's x86 server division to Chinese hardware maker Lenovo.

Chinese authorities had already approved the $2.3bn deal struck in January, despite the ongoing paranoia between the two nations over privacy and espionage.

In the United States, the deal had been referred to the Committee on Foreign Investments in the United States (CIFUS) as regulators pondered whether the takeover would leave US servers vulnerable to Chinese surveillance.

This, however, is not the first time that Lenovo has successfully bought a chunk of IBM. Lenovo purchased IBM's PC division in 2005, a deal that was also cleared by CIFUS.

The deal is now expected to close by year-end in a decision that is likely to prove lucrative for Lenovo, as it takes advantage of recent Chinese government pressures on IT managers to buy servers locally.

IBM is divesting many of its legacy divisions as it continues to move towards cloud, big data and large server technologies.

Last week, the company bought cloud security firm Lighthouse Security Group to bolster its cloud security credentials.

The Chinese government has proven to be no friend of US technology concerns in recent months, with a state television news broadcast reporting that Windows 8 is spyware tool for Microsoft.

The country is believed to be developing its own customised operating system based on Linux, as it continues to reduce its reliance on Western technology companies. µ


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