IBM CEO Ginni Rometty image: IBM

Germany’s Federal Cartel Office (also known as Bundeskartellamt), the country’s national competition regulator has announced that it’s extending a review of a mainframe computing deal between IBM and T-Systems, the IT services arm of Deutsche Telekom. The organization is extending its review period by two weeks to the 9th of July.

The deal involves the purchase of T-Systems’ assets in IT services and outsourcing, and mainframe computing by IBM for a reported 860 million euros ($962 million). The unit — to be purchased — employs 400 people.

image: IBM

Since a takeover by current T-Systems CEO Adel Al-Saleh in 2018, the IT arm has reduced headcount, shut offices, and shifted some jobs offshore in a bid to generate profits and cash flows. This sale to IBM could be another way it’s looking to boost its cash flows.

IBM agreed to a deal to acquire the assets from T-Systems early this year.

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