The Chinese giant lands in Germany. Lenovo, the fourth largest computer company in the world, has launched an 830 million dollar takeover bid for Medion, active in the wholesale sale of electronic products. It is the first time that a Chinese group has attempted to get its hands on a company listed in Frankfurt.
Lenovo is not new to operations of this level. It has already completed the purchase of IBM's PC assets, as well as having created a joint venture with the Japanese NEC. Today the group wants to take the plunge and extend its tentacles to Europe as well. This is the way to make the definitive leap in quality, significantly increasing its market share globally.
"Through the deal, Lenovo expects its share of the Western European PC market to rise from its current level by about 7 percent," CEO Yang Yuanqing said after the announcement, adding that "the group is open to other acquisitions to grow the business”.
Lenovo has proposed a cash tender offer of 13 euros per share on all outstanding Medion shares. The majority shareholder of the German group, Gerd Brachman, has agreed to sell a stake of around 36,66%. The news of the offer made Medion shares soar in Frankfurt: the stock gained as much as 18%, going well beyond the 13 euro offer.
