Lenovo launches $830 million takeover offer for German firm

Reuters News
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Posted: Jun 01, 2011 2:48 AM

By Lee Chyen Yee and Huang Yuntao

TAIPEI/HONG KONG (Reuters) - Lenovo, the world's No.4 PC brand, is launching a takeover offer worth more than $800 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 Ltd will buy 36.66 percent of German consumer electronics wholesaler Medion AG at 13 euros per share in a deal worth 231 million euros ($340 million), it said on Wednesday.

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 percent, CEO Yang Yuanqing told Reuters after the announcement, adding that the company was open to more acquisitions to grow its business.

"If the acquisition helps us to realize our strategy, we will consider it. We think both the NEC deal and the Medion deal helped us to realize our strategy," Yang said by telephone.

(Additional reporting by Kelvin Soh in Hong Kong; Editing by Jacqueline Wong)