Computers & Laptops

Competition panel clears Lenovo’s acquisition of IBM server business

| Updated on: Mar 24, 2014
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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 assurance

IBM 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 players

There 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.

Published on March 24, 2014

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