European Union approves Lenovo's Google Motorola acquisition
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Research Triangle Park, N.C. — Good news for Lenovo comes from the European Union, which has given approval to it's proposed $2.8 billion acquisition of Google (Nasdaq: GOOG) Motorola Mobility.
While Lenovo is still awaiting word from U.S. regulators, the EU decision announced Friday shows forward momentum toward a combination of Lenovo and Motorola smartphones worldwide.
Last week, Lenovo said that it was "on track" to win regulatory approval for both the Motorola Mobility and IBM x86 server acquisitions by the end of the year. Media reports have indicated that Lenovo and IBM are facing a variety of challenges in winning the OK for that $2.3 billion deal, which will affect some 2,000 IBM workers in RTP.
The deal for Motorola is part of Lenovo's strategy to widen its smartphone penetration in the U.S. and Western Europe where Lenovo lacks any significant presence.
"The Commission concluded that the proposed acquisition would not raise competition concerns in relation to smart mobile devices (smartphones and tablets), given the limited market position of the parties and the presence of other strong suppliers in the market," The EU said in its approval statement,
"The transaction was examined under the normal merger review procedure," the EU added.
The full statement follows:
Mergers: Commission clears acquisition of Motorola Mobility by Lenovo
"The European Commission has approved under the EU Merger Regulation the acquisition of Motorola Mobility Holdings LLC of the US by Lenovo Group Limited of China. Motorola Mobility is a supplier of smart mobile devices. Lenovo manufactures and markets desktop and notebook PCs, workstations, servers, storage drives, and IT management software. The Commission concluded that the proposed acquisition would not raise competition concerns in relation to smart mobile devices (smartphones and tablets), given the limited market position of the parties and the presence of other strong suppliers in the market. Moreover, the proposed transaction will not lead to shutting out competitors from the market for smart mobile devices given the limited number of (not standard essential) patents acquired by Lenovo as a result of the merger and the limited size of Motorola Mobility's smart mobile device business."
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