{"id":104,"date":"2014-01-23T21:57:36","date_gmt":"2014-01-23T21:57:36","guid":{"rendered":"http:\/\/www.tech-e-view.com\/internet\/?p=104"},"modified":"2014-01-23T21:57:36","modified_gmt":"2014-01-23T21:57:36","slug":"lenovo-to-buy-ibm-server-unit","status":"publish","type":"post","link":"https:\/\/www.tech-e-view.com\/internet\/lenovo-to-buy-ibm-server-unit","title":{"rendered":"Lenovo to buy IBM server unit"},"content":{"rendered":"

\"lenova\"<\/a><\/p>\n

Chinese PC maker Lenovo Group Ltd has agreed to buy International Business Machine Corp’s low-end server business for $2.3 billion in what would be China’s biggest technology deal.
\nThe long-expected acquisition comes nearly a decade after Lenovo bought IBM’s money-losing ThinkPad business for $1.75 billion, eventually becoming the world leader in personal computers in 2012.<\/p>\n

The sale of the low-end server operation – which still needs U.S. government approval – would allow IBM to focus on its decade-long shift to more profitable software and services.<\/p>\n

The deal would increase Lenovo’s share in the server market to 14 percent from 2 percent, said Peter Hortensius, a senior vice-president at Lenovo.<\/p>\n

The deal needs clearance from the Committee on Foreign Investment in the United States (CFIUS), which protects U.S. national security.<\/p>\n

Chinese companies faced the most scrutiny over their U.S. acquisitions in 2012, according to a CFIUS report issued in December.<\/p>\n

Lenovo’s purchase of IBM’s notebook division faced scrutiny before approval, and this time will be easier, analysts said.<\/p>\n

“It’s fair to say that this deal is more likely to get through CFIUS without major problems than the 2005 transaction,” said John Reynolds, a partner at law firm Davis Polk & Wardwell in Washington, D.C. who has handled CFIUS issues for 20 years.<\/p>\n

Reynolds saw relatively little national security risk in the deal, noting that Lenovo was well-known in the United States.<\/p>\n

Maybank Kim Eng analyst Warren Lau noted that the System X server, among the systems to be bought by Lenovo, is based on commoditized technology and components from the United States.<\/p>\n

This deal is likely also to win U.S. antitrust approval, perhaps within weeks, said Jonathan Lewis, an antitrust partner with Baker & Hostetler LLP. “Given that Lenovo is likely to take advantage of its lower-cost manufacturing base in China, this deal is likely to be viewed as pro-competitive.”<\/p>\n

IBM shares edged 0.2 percent lower to $182.27 at mid-afternoon Thursday. Trading in Lenovo shares was halted before the close in Hong Kong ahead of the announcement.<\/p>\n","protected":false},"excerpt":{"rendered":"

Chinese PC maker Lenovo Group Ltd has agreed to buy International Business Machine Corp’s low-end server business for $2.3 billion in what would be China’s biggest technology deal. The long-expected acquisition comes nearly a decade after Lenovo bought IBM’s money-losing ThinkPad business for $1.75 billion, eventually becoming the world leader in personal computers in 2012. […]<\/p>\n","protected":false},"author":1,"featured_media":105,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[9,1,5,41],"tags":[59,58],"class_list":["post-104","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-news","category-servers","category-usa","tag-computer","tag-lenovo"],"_links":{"self":[{"href":"https:\/\/www.tech-e-view.com\/internet\/wp-json\/wp\/v2\/posts\/104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tech-e-view.com\/internet\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tech-e-view.com\/internet\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tech-e-view.com\/internet\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tech-e-view.com\/internet\/wp-json\/wp\/v2\/comments?post=104"}],"version-history":[{"count":1,"href":"https:\/\/www.tech-e-view.com\/internet\/wp-json\/wp\/v2\/posts\/104\/revisions"}],"predecessor-version":[{"id":106,"href":"https:\/\/www.tech-e-view.com\/internet\/wp-json\/wp\/v2\/posts\/104\/revisions\/106"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tech-e-view.com\/internet\/wp-json\/wp\/v2\/media\/105"}],"wp:attachment":[{"href":"https:\/\/www.tech-e-view.com\/internet\/wp-json\/wp\/v2\/media?parent=104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tech-e-view.com\/internet\/wp-json\/wp\/v2\/categories?post=104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tech-e-view.com\/internet\/wp-json\/wp\/v2\/tags?post=104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}