The first big tech stock corporate takeover in a while. News in that Lenovo who are the 4th largest computer manufacturer in the world, have made a takeover bid for Medion.
Medion is a German stock and Lenova is Chinese. Lenovo are looking to purchase 36.66% of Medion AG shares at EUR13 each from the founder Gerd Brachmann, who owns 55% of the stock. So shareholders will not be electing to tender their shares in this offer.
Lenovo build personal computers as well as commercial systems, workstations, servers and storage drives. They currently control around 10% of the world market in computer hardware. The Chinese state own about 27% of Lenovo through state shares in Legend Holdings Limited.
Medion produce a budget priced range of computers and electronics and markets most of its products through the Aldi supermarkets.
Takover of IBM’s PC Company Division
In 2005 Lenovo bought the IBM PC Company Division for $1.75 billion. This was its first and largest takeover to date. Earlier this year Lenovo made a partnership with Japan’s NEC to create a new company called Lenovo NEC Holdings B.V.
This is the first takeover offer on a German stock by a Chinese corporation and it will be interesting to see what shareholders make of it.
Lenovo’s CEO Yang Yuanqing has stated that he is looking for more takover opportunities to help grow his business further.