The Netherlands has blocked a planned acquisition by New York-based technology company Kyndryl of Dutch cloud services provider Solvinity, citing national security concerns. The decision prompted a formal expression of disappointment from the United States government.

The U.S. Embassy in The Hague issued a statement Wednesday saying the U.S. was "disappointed by the Dutch government's decision regarding the Kyndryl-Solvinity deal." The embassy's statement indicated the acquisition had been under review by Dutch authorities as part of their foreign investment screening process.

Kyndryl, which was spun off from IBM in 2021, provides information technology infrastructure services to enterprise clients. The company had sought to acquire Solvinity, a Dutch provider of cloud computing and digital infrastructure services, though financial terms of the proposed deal were not disclosed.

The blocked acquisition reflects growing scrutiny by European governments of foreign takeovers in sensitive technology sectors. The Netherlands, like other EU countries, has implemented enhanced foreign investment screening mechanisms in recent years to evaluate potential national security risks from cross-border deals.

Dutch authorities did not immediately provide detailed public explanation for the specific security concerns that led to blocking the transaction. The decision comes amid broader geopolitical tensions affecting technology sector investments and data security considerations in critical infrastructure sectors.