Lenovo to Complete Acquisitions of IBMs Servers before Year Ends
Lenovo Group Ltd. China’s leading personal computer maker is expecting to complete their acquisition of International Business Machine Corp. or IBM’s low end server business before the year ends. The company is also trying to obtain regulatory approvals for their US$2.91 billion deal to purchase Google’s Motorola Mobility as well.
After announcing the deals in January, Lenovo is expecting both deals to close before the year ends. Its announcement of the IBM acquisition came ten years earlier after Lenovo purchased IBM’s money losing Think Pad business for US$ 1.75 billion. Both deals are now under approval process in US and China. Experts familiar with the matter said that US security officials are looking into the risks that are related to the IBM server deal and are concern that the servers are still being used by several departments of the US Government.
Still Lenovo is confident that both transactions will be completed by year’s end as they are making good progress in obtaining the proper approvals for the deals. Since tensions over cyber security issues have further placed tensions between the US and China since the US Department of Justice charged Chinese military officials with hacking of the computer systems of US companies in order to steal trade secrets.Lenovo