Comments
The Competition Commission of India (CCI) has given its nod to the acquisition by Lenovo of the x86 server business of IBM.
According to the documents, the proposed combination, inter alia, includes the transfer of assets, contracts and employees associated with IBM’s x86 server business.
IBM’s assuranceIBM in its notice to CCI had said that it would not dispose of its enterprise system portfolio.
In its order, CCI said Lenovo was not present in the server market in India and through the proposed combination, it would enter as a competitor in the already competitive and dynamic server market in India. There is no horizontal overlap between Lenovo and IBM in the market of x86 server business in India. According to the information provided in the notice, after the combination, IBM will continue to provide maintenance services for the x86 server business on Lenovo’s behalf for a limited transitional period to ensure smooth transition.
Other playersThere is also presence of other players such as HP, Dell, Oracle and Cisco, in the x86 server business. CCI said the proposed combination was not likely to raise any appreciable adverse effect on competition in India.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.