HP Sells Control of China Units for $2.3 Billion to Tsinghua

Why Did Hewlett-Packard Sell Stake in China Unit?

Lock
This article is for subscribers only.

Hewlett-Packard Co. sold a majority stake in its Chinese server, storage and technology assets for $2.3 billion to Tsinghua University, becoming the first major U.S. technology company to pass control to local owners since the government stepped up restrictions on foreign firms.

A group owned by the Chinese university, Tsinghua Holdings, will purchase the 51 percent stake in a new business called H3C. The deal values the businesses at $4.5 billion net of cash and debt, the companies said Thursday in a statementBloomberg Terminal.