Google executive chairman expects U.S. approval of Lenovo-Motorola deal

WASHINGTON Tue Feb 4, 2014 4:26am EST

Google Executive Chairman Eric Schmidt speaks during a talk titled ''Connecting with the World: Empowering Young Entrepreneurs for the New Digital Age'' at the Chinese University of Hong Kong November 4, 2013. REUTERS/Bobby Yip

Google Executive Chairman Eric Schmidt speaks during a talk titled ''Connecting with the World: Empowering Young Entrepreneurs for the New Digital Age'' at the Chinese University of Hong Kong November 4, 2013.

Credit: Reuters/Bobby Yip

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WASHINGTON (Reuters) - Google Inc Executive Chairman Eric Schmidt expressed confidence on Monday that Lenovo Inc would gain approval from U.S. regulators to buy Google's Motorola smart-phone hardware business in what would be China's biggest technology acquisition to date.

Schmidt said he saw "a good chance" of the deal passing muster with the Committee on Foreign Investment in the United States, or CFIUS, which monitors acquisitions by overseas corporations.

Speaking at a dinner organized by the Cato Institute think tank, Schmidt said Lenovo's experience buying IBM's ailing personal computer division in 2005 would stand it in good stead as it seeks the green light to acquire the Motorola business.

"There's a good chance of it being OK," Schmidt said, adding, "We would not have done the transaction if we thought it would be in trouble."

Lenovo said last week it would acquire the Motorola handset business, along with some 2,000 patents, for $2.91 billion. That came days after an announcement the company would purchase IBM's low-end server unit for $2.3 billion.

The deals will be reviewed by CFIUS to ensure they do not threaten national security.

(Reporting by Krista Hughes; Editing by Peter Cooney)

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Comments (2)
UScitizentoo wrote:
I don’t really know why we keep calling this Lenovo. It’s financed, purchased and owned by the Military Communist Chinese. Those crazy Military Communists, such kidders.

Feb 03, 2014 11:02pm EST  --  Report as abuse
bertanderson wrote:
I think the government should really scrutinize and merger or acquisition by the large tech companies. These decisions have global economic impacts.

Feb 04, 2014 4:31am EST  --  Report as abuse
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