Cy­ber se­cu­rity could block Len­ovo-IBM deal

China Daily (Canada) - - NEWSCAPSULE -

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.

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