Huawei abandons 3Leaf acquisition
Huawei has finally loosed its grip on US server firm 3Leaf, giving in to intense pressure from US authorities over the deal.
The Chinese vendor has decided to walk away from the $2 million (€1.4 million) deal following a probe by the US Committee of Foreign Investment (CFIUS), despite declaring just last week that it would fight attempts to block the acquisition.
Huawei was ready to take its battle all the way to the Obama administration, but has now walked away apparently to allow it to focus on a fresh deal in the UK, the BBC reports.
The firm’s 3Leaf take-over hit the headlines in November when US authorities ordered it to seek retro active approval of the purchase under rules covering the acquisition of a start-up – a move Huawei didn’t believe was necessary.
Chinese vendors face increasingly tough restrictions on business in the US, due to concerns over links to China’s military, however Huawei and ZTE have scored big in Europe in the past 12 months.