IBM Deutschland has withdrawn its application for the acquisition of the mainframe service business of T-Systems, the German Cartel Office said in a statement. The Cartel Office said that the acquisition and the outsourcing cooperation between the companies raised competition concerns. It has extended its review of the sale until 09 July.
IBM holds a dominant position in the EU that would have been further strengthened by the takeover of the staff and essential infrastructure of the competitor T-Systems, the president of the Cartel Office Andreas Mundt said.
The deal includes the essential hardware and software of T-Systems and the acquisition of several hundred specialists for the operation of high-performance computers, but not a takeover of the existing contracts of T-Systems with end customers. A cooperation agreement was planned in order for IBM to serve the end customers of T-Systems as a subcontractor. The could have been worth EUR 860 million, according to previous reports.
