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Lenovo buys Medion to overtake Apple in European market

updated 09:05 am EDT, Wed June 1, 2011

Lenovo snaps up Germany's Medion

Lenovo on Wednesday made a grab for market share on Wednesday by acquiring Medion. The buyout of the German PC builder was intended expressly to gain influence in Western Europe and should help it leapfrog multiple companies, including Apple. Its takeover would give it 14 percent of Germany and 7.5 percent of Europe, according to its own estimates and IDC data.

The buyout would see Lenovo oust Apple from the top five in the Western European market, according to Gartner estimates. Apple has been growing rapidly and leapt from 4.9 percent share in early 2010 to 6.6 percent this year, but it would immediately be passed over if its market share were to stay the same. It would also threaten ASUS at 8.6 percent and give Lenovo an opportunity to challenge Dell, at 9.6 percent.

Lenovo has been one of the fastest-growing PC designers worldwide and is near passing Acer. Most of its share gains have been in Asia, including its native China, where Europe and North America have been dominated by American companies like Apple, Dell, and HP along with Japan's Toshiba.

The Medion deal will see Lenovo pay the cash equivalent of almost $19 per share. Company head Gerd Brachmann would skip the public offer but sell 40 percent of Medion shares at the same price as well as take some Lenovo shares. At least 15 percent of Medion's remaining shares would have to be owned by someone else besides Brachmann.

Both the PC brands are due to remain separate should the deal successfully close in the summer.



By Electronista Staff
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Comments

  1. iphonerulez

    Dedicated MacNNer

    Joined: Nov 2008

    -4

    This is something I'd like to see Apple do

    but it appears that Apple can only grow through building of its retail stores which is a rather slow process. It's nice to be able to leapfrog competitors through mergers and acquisitions but Apple is unlikely to do anything like that. In that respect, Apple as a company seems to be hobbled for shareholders. I'm not complaining, but merely stating my view.

  1. Eldernorm

    Fresh-Faced Recruit

    Joined: Sep 2007

    +2

    Apple market share

    While other companies (see above) still shoot for market share cause of course that is the golded egg in the computer world, Apple shoots for great products and profit. Exactly what is gained in buying a competitor just to get market share numbers?? Was this other company making a profit? How much did it cost to get a market share number???

    Just a thought here,
    en

  1. Foe Hammer

    Fresh-Faced Recruit

    Joined: Feb 2005

    +4

    To Paraphrase Forrest's Mom ...

    ... Windows is as Windows does.

    Sounds more like one trash disposal/sanitation company just bought another. The same amount (and kind) of trash is being moved around, just now under one name instead of two.

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