Lenovo is hoping to acquire a majority stake in German PC Medion Electronics manufacturer, to increase its share of market in Western Europe, the Chinese company said Wednesday.
The acquisition would help Lenovo grow its market share of PC consumers in Western Europe and the German market, more specifically, the company said in a news release.
Lenovo has tried to penetrate in the space of European consumers, but had little success, according to Eszter Morvay, Manager of the Group European Personal Computing of IDC research.
Medion, last PC pan-European manufacturer, sells more than 60% of its computers in Germany, but also made a mark in countries such as the Austria and Belgium, Morvay.
During the first three months of 2011, Medion had a share of 4 per cent of the market in Western Europe consumer, compared to only 0.5% for Lenovo, Morvay said.
Lenovo offers €13 (US$ 18.70) in cash per share Medion, a premium of 29% on the average closing price for 30 days.
Values offers Medion 629.4 million euros. The transaction will be only go ahead if traded the holders of at least 15 per cent of the shares of Medion accept. That would be sufficient to give a majority stake in society, such as Medion founder and CEO Gerd Brachmann has already agreed to sell two-thirds of its 60% stake in Lenovo society for €13 by action, 80 percent of it in cash and 20% in shares of Lenovo for Lenovo.
This is not the first time that Lenovo has attempted to buy a European manufacturer of PC: a few years she also made a play for Packard Bell, but rejected for Acer.
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