Feeds

China clears Lenovo's slurp of IBM server biz

Firm reckons deal will close this year, despite US national security concerns

Top 5 reasons to deploy VMware with Tegile

The Chinese Ministry of Commerce has finally approved Lenovo’s $2.3bn deal to buy Big Blue’s server biz, according to Reuters.

The country’s anti-monopoly bureau has taken its time over the decision and the US authorities have yet to rule on the acquisition, but Lenovo has said it expects the deal to close this year.

Chief exec Yang Yuanqing said at the annual general meeting in Hong Kong that the firm reckons that its slurps of both IBM’s server biz and Google’s Motorola Mobility biz should be completed by the end of the year and said that national security issues shouldn’t be a problem with America.

"We hope to complete the two deals by year-end," he said. "The US government...and US Army are all our clients. There has been no issue and we will keep this tradition."

A report in the Wall Street Journal last week alleged that the IBM deal was being held up because the US was worried about security implications.

Big Blue’s x86 servers are used in nationwide comms networks and Pentagon data centres, familiar people told the paper, and security officials and members of the Committee on Foreign Investments (CFIUS) are worried about them being compromised.

The US and China have been trading barbs on cybersecurity for years now, both accusing the other’s government and tech companies of corporate spying and intelligence-gathering for the authorities. When Lenovo tried to buy IBM’s PC biz all the way back in 2005, the firm had to fight for approval and the computers were eventually banned by the State Department from use on its classified networks. ®

Beginner's guide to SSL certificates

More from The Register

next story
Ellison: Sparc M7 is Oracle's most important silicon EVER
'Acceleration engines' key to performance, security, Larry says
Oracle SHELLSHOCKER - data titan lists unpatchables
Database kingpin lists 32 products that can't be patched (yet) as GNU fixes second vuln
Lenovo to finish $2.1bn IBM x86 server gobble in October
A lighter snack than expected – but what's a few $100m between friends, eh?
Ello? ello? ello?: Facebook challenger in DDoS KNOCKOUT
Gets back up again after half an hour though
Hey, what's a STORAGE company doing working on Internet-of-Cars?
Boo - it's not a terabyte car, it's just predictive maintenance and that
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.