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China: MOFCOM to allow Lenovo/IBM deal

By  |  July 9, 2014

China’s Ministry of Commerce will reportedly allow IBM to sell its low-end server business to Lenovo Group in a $2.3 billion transaction.

Reports say MOFCOM approved of the acquisition, first announced in January, despite recent reports that US national security could be at stake due to the deal.

The buyout remains subject to regulatory approval by the US, and experts expect a strenuous review of the deal because of security concerns. Critics say China’s Lenovo could open doors for cyberspies into US government servers.

But Lenovo chief executive Yank Yuanquing said that the security concerns are unfounded and said he still expects the deal to close by the end of the year. “If you look at our history, with domestic and overseas clients, there have never been any issues regarding security,” the executive said.

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