PC maker Lenovo is launching a takeover offer worth more than $800 million (€556 million) for Germany's Medion, the first public takeover of a German company by a Chinese firm.
Lenovo has been involved in several high profile PC deals, such as acquiring IBM's PC business and earlier this year forming a venture with Japan's NEC , as it tries to capture more market share globally.
Lenovo Group will buy 36.66 per cent of German consumer electronics wholesaler Medion AG at €13 per share in a deal worth €231 million, it said today.
The deal, in which Barclays Capital is the sole financial adviser, paves the way for a full takeover in a deal that is worth around $830 million, a source said.
With the deal, Lenovo expects its PC market share in western Europe to rise from the current level of about 7 per cent, chief executive Yang Yuanqing said after the announcement, adding that the company was open to more acquisitions to grow its business.
"If the acquisition helps us to realise our strategy, we will consider it. We think both the NEC deal and the Medion deal helped us to realise our strategy," Mr Yang said.
Reuters
