20 January 2019

IBM-Lenovo deal likely to spark US security review, WSJ says

International Business Machines Corp. has agreed to sell its low-end server business to Chinese computer maker Lenovo Group Ltd. but the deal could spark a security review by the United States, the Wall Street Journal reported Thursday, citing legal experts. US regulators will scrutinize details of the deal, potentially delaying it for several months or even making it impossible to complete. The US$2.3 billion deal, which comes amid rising tensions between Beijing and Washington, would be the biggest overseas technology acquisition by a Chinese company, according to research firm Dealogic. Sensitive mergers involving foreign parties need clearance from the Committee on Foreign Investment, an inter-agency body headed by the Treasury Department that screens deals for their effect on national security, the report said.

– Contact HKEJ at [email protected]


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