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BREAKING NEWS

IBM, T-Systems abandon mainframe venture - German cartel office

IBM, T-Systems abandon mainframe venture - German cartel office
FILE PHOTO: The logo for IBM is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 27, 2018. REUTERS/Brendan McDermid -
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BRENDAN MCDERMID(Reuters)
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FRANKFURT (Reuters) – IBM has withdrawn an application for anti-trust approval for a mainframe computing venture with T-Systems, the IT services arm of Deutsche Telekom, after the German cartel office took a closer look at the transaction.

Pulling the deal marks a setback for T-Systems CEO Adel Al-Saleh, who since being hired at he start of 2018 has reduced staff, closed offices and sought to hive off business lines that are not expected to generate profitable growth.

“According to our preliminary assessment IBM holds a dominant position here in the European Economic Area which would have been further strengthened by acquiring personnel and essential infrastructure from its competitor, T-Systems,” Cartel Office chief Andreas Mund in a statement on Friday.

(Reporting by Douglas Busvine, editing by Riham Alkousaa)

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