US allows the sale of IBM’s server to Lenovo

In spite of festering economic tensions between the two largest world economies, the US has allowed IBM to sell off its x86 servers to Lenovo, a China electronics company. This $2.3 billion transaction scaled through after the US Committee on Foreign Investment approved of the sale.

Although the exact conditions that made the sale possible are not made public, Lenovo had earlier bought Google’s Motorola Mobility unit for $2.91, and this appears to be an influence in the US’s approval of the purchase of IBM’s server by the Chinese company.

The IBM’s x86 servers were mostly manufactured in Shenzhen, China, and it link various computers on corporate networks. China is developing more interests in buying US companies, and this is increasing concerns about the security of the US technologies and her peoples.

The sales had undergone rigorous scrutiny before it was eventually approved by US Congress, and China’s Lenovo has maintained an unusual impetus and motivation to want to acquire the deal at all costs, even to the point of paying double the required typical fee and also resubmitting applications.

According to Ivan Feinseth, an investment executive at Tigress Financial Partners, “this is part of IBM’s process moving away from hardware manufacturing to a more service-oriented product line…they are trying to change the direction they are going.” Lenovo’s headquarters also has this to say, “we continue to work through a number of regulatory and business processes to ensure an effective and timely closure on both deals.”