Fujitsu should be
Lenovo target?
The Financial Times believes Lenovo could be forgiven for feeling frustrated.
After mastering the Herculean task of integrating IBM’s personal computer operations, meant to secure long-term growth and a place among the world’s top PC-makers, the company has fallen behind Acer, its closest rival, in both growth and market share.
The solution is more acquisitions, and Lenovo has made it all too clear it knows that. But even more frustratingly, the last two attempts to strike a deal have been unsuccessful.
Last year, the Chinese company planned to acquire Packard Bell, a European PC company that could have given Lenovo a foothold in Acer’s strongest market. But Acer scooped up Packard Bell as a side dish with its acquisition of Gateway, the US computer company.
Now Lenovo has tried and failed again, this time with Positivo Informatica, Brazil’s biggest computer brand.
What Lenovo needs is not a small acquisition but rather one that can at least halve its market share gap with Acer. Currently, Acer holds 12% of the global PC market, and Lenovo trails at less than 8%.
Although Lenovo has denied interest, the right target – and one that would come closest to the benefits of Packard Bell – is the PC business of Fujitsu, which is willing to sell and recently bought out its joint venture partner Siemens to make the unit more attractive.
The Financial Times thinks Lenovo would be wise to test the adage ‘third time lucky’.
Source: Financial Times