(Adds CEO quote, background)
HONG KONG, July 2 Proposed purchases by China's
Lenovo Group Ltd of IBM Corp's low-end server
unit and Google Inc's Motorola Mobility business
should be completed by year-end, Lenovo Chief Executive Officer
Yang Yuanqing said on Wednesday.
The deals are currently undergoing approval by U.S. and
"Both deals are under the approval process in the two
countries and they are progressing," Yang said at Lenovo's
annual general meeting in Hong Kong.
"We hope to complete the two deals by year-end," he said.
"The U.S. government...and U.S. Army are all our clients. There
has been no issue and we will keep this tradition."
Last week, the Wall Street Journal reported that the $2.3
billion IBM deal was in limbo while the U.S. government
investigated national security issues.
The January announcement for the acquisition came nearly a
decade after Lenovo bought IBM's money-losing ThinkPad business
for $1.75 billion, which had also faced scrutiny.
Tensions between the United States and China over
cybersecurity issues have reached new highs since the U.S.
Department of Justice charged five Chinese military officials
with hacking the systems of U.S. companies to steal trade
secrets in May. China denies the charges and has in turn accused
Washington of massive cyberspying.
(Reporting by Clare Jim; Writing by Paul Carsten; Editing by
Paul Tait and Matt Driskill)