Lenovo to Acquire Packard Bell
Lenovo to Acquire Packard Bell
August 9th, 2007: Lenovo has announced it has entered into a memoriam of understanding to acquire European computer company Packard Bell.
Computer manufacturer, Lenovo has entered into official talks to acquire Packard Bell. The deal is still in its early stages, with no disclosure on a potential sum or technicalities of such an arrangement. Despite this, the official announcement chases off rumours of other purchasers and has stirred up intense speculation of the impact of such a deal.
Lenovo is a Chinese company who bought out IBM’s Personal Computer (PC) division and is engaged in a global war for market position. Currently Lenovo is considered to be in third position in the global PC market, a spot that is contested fiercely by Acer. If successful, the Lenovo acquisition of Packard Bell could see a huge boost to its European position, where it lies in sixth place.
Even if the acquisition goes through, Lenovo will face fierce competition from major players Dell, Hewlett Packard and Acer. The pressure will be on to bring Packard Bell into the Lenovo fold efficiently to see returns on such a large investment if the deal goes ahead.
The deal is currently being arbitrated through a neutral third party, with further developments expected. Lenovo has warned shareholders that the deal may or may not materialise.