Lenovo has been trying to establish itself as a leading player in developed markets such as Europe Chinese PC maker Lenovo has agreed to buy German electronics retailer Medion in a bid to boost its market share in Europe.
Lenovo will pay $331m (£203m) for a 37% stake in the company.
Lenovo said it hoped that the deal would help it double its share of Germany’s PC market to 14%.
Lenovo is the world’s fourth-largest computer maker. Medion specialises in sales of low-cost computers and electronic devices.
The announcement pushed Medion shares up by 17% in Frankfurt, but Lenovo’s shares fell by more than 3%.
The deal comes just four months after Lenovo signed a deal with Japanese firm NEC to establish a joint venture in Japan.
It is Lenovo’s biggest acquisition since it purchased IBM’s PC business six years ago.
Analysts say the company is now looking to make further inroads into the developed markets like the US and Europe.
“Lenovo probably wants to add its presence in mature markets,” said Vincent Chen of Yuanta Securities.
However, Mr Chen raised concerns that even though Germany was Europe’s biggest economy, it may not be the best bet for the Chinese computer maker.
“The question is why Germany, because that’s a very slow growth market,” he said.
“It raises questions on how much benefit this will bring to them,” he added.
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