IBM scraps T-Systems' mainframe unit takeover

Friday, 07. June 2019 13:19

Germany's Federal Cartel Office or Bundeskartellamt said IBM Deutschland GmbH gave up on the planned purchase of T-Systems International GmbH's mainframe service business. The update released on Friday comes after the panel pointed to competition issues including the connected outsourcing partnership.

Despite the strong push to cloud and other new solutions, mainframe services still account for a market worth billions, the body's president Andreas Mundt said and stressed International Business Machines Corp. is dominating the field within the European Economic Area. The United States–based company and its competitors are conducting the services for companies which outsource them. The takeover deal included a plan for IBM to be a subcontractor for the subsidiary of Deutsche Telekom AG as the latter would keep its customers.

The statement issued after the second phase of the probe reveals concern about the buyer's potential expansion in access to sales markets.

Related Links: Deutsche Telekom AGInternational Business Machines Corp.
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