By | John Oates 14th March 2005 10:26

IBM to sell Lenovo kit by year-end

Deal is go...

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Lenovo kit will be available for sale from IBM by the end of the year.

The Chinese computer maker intends to sell its consumer products through IBM's corporate sales network. The news follows approval from US regulators of Lenovo's $1.25bn purchase of IBM's PC business. There were security concerns because IBM supplies so many US government and security agencies.

The takeover was investigated by the US Treasury's Committee on Foreign Investment. Lenovo will move staff from IBM to its own dedicated site and will give up access to IBM's list of government clients, according to reports. There were fears that the Committee would insist on further restrictions.

Lenovo's main challenge now is to hold on to customers. A survey of 4,000 existing customers found 90 per cent in favour of the deal.

The firm will focus on laptops where margins remain stronger. Lenovo, formerly known as Legend Group, employs 9,000 people and turned over $2.97bn(HK$23.2bn) in 2004.