Lenovo looks to buy Packard Bell
By Suzanne Deffree, News Editor -- EDN, August 7, 2007
China-based PC maker Lenovo today announced it is in discussion with an independent third party on the proposed acquisition of Packard Bell BV, a computer company in Europe.
Lenovo withheld the name of the third party, but said it has entered into a memorandum of understanding with the party to explore the possible acquisition.
If the transaction materializes -- which Lenovo reminded its shareholders and potential investors in its statement may or may not happen -- it would add to Lenovo’s growing strength as a global player PC market. The Hong Kong-based company began to spread its wings in December 2004 when IBM sold Lenovo its PC business for $1.75 billion, making it the world’s third-largest PC company. It continued to maintain that position in IDC’s Q2 PC ranking with 8.3 percent worldwide market share.
Since the ThinkPad buy, Europe has become a significant market for Lenovo. IDC reported in its Q2 ranking that Lenovo in the quarter saw shipments increase 22 percent in Europe, the Middle East and Africa (EMEA), up from 14 percent in Q1 and single-digits in prior quarters. Packard Bell is the number three player in the European consumer PC market and has been operating in Europe since 1991.
However, Lenovo is not alone in its interest in Packard Bell. According to July reports, Taiwan-based Acer, ranked fourth in IDC’s Q2 results with 7.2 percent worldwide market share, is rumored to be planning an acquisition of the smaller company. Acer has not confirmed the rumors and could not be reached by Electronic News today for further comment.
Lenovo said it is currently continuing negotiation with the independent third party and undertaking certain necessary enquiries with third parties and/or government bodies in preparation for the entering into of definitive agreements for the proposed acquisition.
Lenovo said it will make an announcement “as and when appropriate” to comply with the Hong Kong Stock Exchange listing rules.
