News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

This article was first published 19 years ago
Rediff.com  » Business » Lenovo to seal IBM deal by June

Lenovo to seal IBM deal by June

Source: PTI
January 28, 2005 10:43 IST
Get Rediff News in your Inbox:
China's biggest computer-maker Lenovo has expressed optimism about completing the acquisition of IBM's personal computer business by June despite the deal facing challenges from the US Congress.

"The acquisition is still going on as expected and there are no signs showing that the deal would fail," president and chief executive officer of Lenovo, Yang Yuanqing said.

"I don't think the deal will pose any threat to the United States and we have not received any message from the US government that they will not approve the deal," Yang told reporters after 99 per cent of shareholders approved the deal at an extraordinary general meeting in Hong Kong on Thursday.

He said the deal would create a synergy and Lenovo still aims to complete the deal by June.

"We are confident that we can make it," Yang said. Chinese Foreign Ministry spokesman Kong Quan had on Thursday declined to comment on the probable review of the Lenovo-IBM deal.

Lenovo's $1.75 billion purchase - the largest overseas acquisition by a Chinese company - was cast into doubt after a trio of high-ranking Republican members of the House of Representatives called for a full security review of the sale this week.

Shareholders OK Lenovo-IBM deal

Chinese firm buys IBM's PC business

They expressed fear that the deal could threaten US' security interests and help the transfer of its military-related technologies to China.

The deal, which has already been approved by US anti-trust officials, also requires approval from the US committee on foreign investment in the United States.

The committee, an administrative panel of security and economic agencies led by treasury secretary John Snow, is expected to decide by tomorrow whether to give its approval or launch a full 45-day review which would be subject to a final decision by US President George W. Bush.

"We will fully co-operate with relevant authorities in the investigation," Yang said.

Lenovo's acquisition of IBM's PC unit has not only made Lenovo the world's third-largest computer maker but also acted as an important springboard for the Chinese company to expand overseas.

"Irrespective of the result (of the investigation), we will stick to overseas expansion and strive to establish Lenovo as a global brand," he said.
Get Rediff News in your Inbox:
Source: PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 

Moneywiz Live!