Lenova eyes Netherlands’ packard Bell
China’s Lenova Group, the world’s largest personal computer maker said it was in discussions to buy Packard Bell, one of the biggest player in the European computer industry. In what could become another bold Chinese foray overseas, Lenova said it had signed a memorandum of undrestanding “with an independent third party in relation to a proposed acquisition” of the Netherlands-based company.
“The proposed combination of Lenova Group and Packard Bell fits squarely within Lenova’s strategic growth priorities”, said Angela Lee, a Lenova spokewoman based in Hong Kong. “We belive the proposed acquisition would create a winning combination that could deliver strong market place presence and competitive advantages, particularly in the Western Europe consumer market”. Lenova identified the third party only as the owner and seller of the company. A Chinese American business man, John Hui, bought Packard Bell from Japan’s NEC last year.
The deal would come as the latest in a series of high-profile chinese acquisition abroad, high-lighting the Asian giant’s growing economic muscle. Lenova and Acer, the giant Taiwan computer marker, are currently competing for the third spot in the global computer industry, although both are well behind the industry’s top duo, Dell and Hewlet Packard.
Lenova Group bought IBM’s personal computer unit in 2005 and is still working towards unifying the acquisition with its established operations. It announced in April plans to cut1400 jobs, or 5% of its global workforce. This is expected to result in about $100 million cost savings in the year to March 2008.
