NEW DELHI: Global technology major Lenovo's $2.3 billion deal with IBM to acquire the U.S.-based company's low-end server business has received approval from fair trade watchdog CCI.

The proposed deal, one of the biggest acquisitions by a Chinese firm in the technology space, involves Lenovo Group acquiring x86 server business of technology giant IBM.

The deal "is not likely to have appreciable adverse effect on competition in India", the Competition Commission of India (CCI) has ruled.

The proposed transaction also includes the transfer of assets, contracts and employees associated with IBM's x86 server business.

In an order dated March 20, CCI said that "Lenovo is not present in the server market in India and through the proposed combination, Lenovo will enter as a competitor in the already competitive and dynamic server market in India".

"There is no horizontal overlap between Lenovo and IBM in the market of x86 server business in India," it added.

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