US gov't approves IBM, Lenovo deal

The US government Wednesday gave final approval to IBM to sell its PC division to Chinese PC vendor Lenovo, ending antitrust and federal security fears.

IBM Wednesday said it received final U.S. government approval to sell its PC division to Chinese PC vendor Lenovo Group, and expects to close the deal soon.

The U.S. Federal Trade Commission in early January established that the US$1.75 billion acquisition complies with antitrust laws.

But the deal confronted another obstacle: The Committee on Foreign Investment in the U.S. (CFIUS), composed of representatives from 12 agencies and chaired by the Treasury Department, decided in late January to investigate whether the Chinese government would be able to use IBM's government contacts and contracts for espionage.

CFIUS Wednesday delivered its decision, in advance of a deadline next Monday, that the merger does not threaten national security.

"We expect to close the deal in the second quarter," IBM spokesperson Clint Roswell said.

The deal creates the third largest PC maker in the world and is the first merger for large U.S. and Chinese corporations. As a result of the deal Lenovo Groups' world headquarters will move from Beijing to New York.

IBM will provide sales support through an existing sales force of approximately 30,000, and through its Web site. Lenovo products will also be sold through IBM PC specialists who will join Lenovo.

IBM Global Financing and IBM Global Services will be the preferred providers to Lenovo for leasing and financing services, and for warranty and maintenance services, respectively. However, Lenovo is allowed to use the globally recognized IBM trademark for only five years. The deal will give IBM an 18.9 percent equity stake in Lenovo.

According to IBM, the CFIUS endorsement was the last approval needed for the merger.

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Johan Bostrom

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?