Home · Weather · Forum · Learning Chinese · Jobs · Shopping
Search This Site
China | International | Business | Government | Environment | Olympics/Sports | Travel/Living in China | Culture/Entertainment | Books & Magazines | Health
Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
China's Lenovo Poised to Buy Packard Bell
Adjust font size:

Lenovo Group Ltd, the world's third-largest PC maker, is trying to acquire Europe's Packard Bell BV to bolster its global expansion.


The Hong Kong-listed company said in a statement that "it has entered into a memorandum of understanding with an independent third party to explore the possibilities of the proposed acquisition".


The company did not reveal details of the possible deal.


If it goes through, the deal would be Lenovo's second overseas foray after its acquisition of IBM's PC division two years ago.


"The deal could give Lenovo a strong foothold in Europe," said Simon Ye, an analyst with Gartner, a leading consultancy on IT and communications. "Lenovo has a good niche in China and the US now, but its presence in Europe has been very weak."


In its first fiscal quarter of this year ending in July, Lenovo's revenue from Europe, Middle East and Africa totaled the US$755 million. This region accounted for 19 percent of the company's total income during the period.


Packard Bell earned 1.5 billion euros in revenue last year and claimed to be the fourth-largest PC maker in Europe. It quadrupled its customers to more than 5 million between 2003 and 2005 and has maintained a sales growth of more than 10 percent for three years.


"Packard Bell has a good distribution channel and client base in Europe, which Lenovo lacks," said Ye. "Moreover, the company has good product research and development capacity, especially in the individual user market."


Lenovo's PCs mainly cater for corporate clients in Europe. But the consumer PC market has enjoyed a much higher growth in recent years as incomes rise.


The deal would help Lenovo overtake Fujitsu Siemens Computers Holding BV as the fourth-largest vendor in Western Europe, according to estimates by research firm IDC.


"It would be much easier for Lenovo to integrate the two companies' business this time," said Ye. "The company has had enough relevant experience from its acquisition of IBM's PC arm."


(China Daily August 9, 2007)

Tools: Save | Print | E-mail | Most Read

Username   Password   Anonymous
China Archives
Related >>
- Lenovo Tops Private Businesses List Again
- Cheap Computer Unveiled
- Lenovo Q1 Profit Soars
- Lenovo Reboots in India and Mexico with Plants
- Lenovo to Increase Its Rural Presence
- Lenovo Back in the Black in Fiscal Q4
Most Viewed >>
-Commercial banks allowed to access futures market
-WB cuts China's 2008 GDP growth to 9.6%
-Economic policy needs 'rethink'
-Coal reserves at China power plants up
-Macao's gaming market expands further

May 15-17, Shanghai Women's Forum Asia
Dec. 12-13 Beijing China-US Strategic Economic Dialogue
Nov. 27-28 Beijing China-EU Summit

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?
SiteMap | About Us | RSS | Newsletter | Feedback

Copyright © All Rights Reserved E-mail: Tel: 86-10-88828000 京ICP证 040089号