There are no active ads.

Advertisement

Lenovo Will Face Regulatory Speed Bumps in BlackBerry Buy, Report Says

by Todd Haselton | October 18, 2013October 18, 2013 1:30 pm PDT

BlackBerry Q10-Back

Lenovo recently signed non-disclosure agreements to take a look over BlackBerry’s books, signifying a possible interest in acquiring the company. The China-based company probably won’t be able to acquire BlackBerry outright, Reuters said, noting that sources have suggested there would be too many regulatory hoops that would make the deal unlikely.

That’s not to say Lenovo can’t still place a bid, though. It’s just more likely that the company will put in bids to acquire bits and pieces of BlackBerry, perhaps some of its intellectual property or the hardware business, Reuters explained. That’s very possible, especially if BlackBerry decides to move away from a bid from Fairfax Financial Holdings and instead courts several buyers. Interested parties include Google, SAP AG and Cisco. It’s BlackBerry’s secure software assets that would cause a concern for government regulators.

Canada has a law called the Investment Canada Act, Reuters explained, that basically prevents an international company from swooping in and buying up a Canadian company – should the government decide that it’s not in Canada’s best interest. Security concerns between Canada, the United States and China could push that act into effect, which means it would make it easier for a North American company to take full control over BlackBerry than it would be for Lenovo to do so.

Meanwhile, BlackBerry has said that it’s here to stay, no matter what happens in the future. It’s a promise that the company may have a hard time upholding, from a software and hardware perspective, if buyers ultimately come in and acquire different parts of the firm.

Reuters

Todd Haselton

Todd Haselton has been writing professionally since 2006 during his undergraduate days at Lehigh University. He started out as an intern with...

Advertisement

Advertisement

Advertisement