Cyber security could block Lenovo-IBM deal
Worsening Sino-US cybersecurity trust issues may derail Lenovo Group Ltd’s ongoing $2.3 billion buyout of IBM Corp’s x86 server unit, a top executive from the Chinese company said.
“It is not inconceivable that someone could use (national security concerns) to make a fuss about the deal,” Chen Xudong, senior vice-president of Lenovo, told China Daily, adding that Lenovo is ready and open to all required reviews from the US to make sure the agreement gets government approval before July.
Bloomberg News reported on Wednesday that Lenovo and IBM asked for more time for a national security review, which is required from the US government before the acquisition can take place. IBM did not comment on the story.