Report: Lenovo, IBM seek extension of $2.3B server deal

Bloomberg News is reporting that IBM and Lenovo are seeking more time for U.S. government review of the proposed $2.3 billion sale involving IBM’s x86 business to Lenovo.

Is the deal in trouble?

Spokespersons for both companies told Bloomberg that the deal is on track for regulatory approval before the end of the year.

Lenovo, which operates largely in China but operates its executive headquarters in Morrisville, and IBM must receive approval through a government panel known as the Committee on Foreign Investment.

The two firms won approval for Lenovo’s purchase of IBM’s PC division in 2005.

The x86 server business, like the PC group, is based largely in the Triangle.

More than 2,000 IBM employees are expected to be transferred to Lenovo.

Lenovo has said there will be no layoffs.

The Bloomberg report can be read online.