Internatinal M&a

International M&A cases investigation Case ¢ñ: LENOVO Ltd. Co. purchased IBM¡¯s ecumenic PC business. On May 1st, 2005, LENOVO Ltd. Co., one of the near noted PC producers in China, declared offici aloney to the whole knowledge base that it had successfully purchased IBM¡¯s worldwide PC business, including the business of dining table computers and Laptops. The huge purchasing price amounted to 1.75 billion USD. However, what¡¯s the most significant for LENOVO was that it would become the third largest PC producer all over the world and rank among the global Top five hundred corporations with a consolidated yearly income of 12 billion USD. Motives: As the largest domestic PC producer in China, LENOVO had been developing immobile and operated well since it was established in 1988. Not only it came into the hackneyed market at Hong Kong United Securities House in 1994 and subsequent became one of the largest PC producers in Asia but similarly developed a brand new computer, ¡°SHENTENG 6000¡±, which ranked 14 among the valet de chambre Super Computer Announcement Board. However, LENOVO realized what it achieved during these years was nonoperational not enough to compete with those top PC producers, such(prenominal) as DELL, HP, TOSHIBA and so on because its internationalization was just starting.

In order to accelerate this process LENOVO had two behaviors to contain: one is self-development and the other is merger. But for Chinese corporations, it is still really difficult to choose the first approach because in the eye of most foreign people, Chinese domestic corporations just mention low value, low cost and even poor look so it is almost impossible if LENOVO want to set up a famous brand in this way. And therefore, it had to choose the way of merger, but the first thing was to select the very dear and potential company. If LENOVO chose a small company with little fame, it would also encounter similar problems. Just right the moment, IBM expected to build its industrial structure. So LENOVO decided to catch this good... If you want to rise a full essay, order it on our website: Ordercustompaper.com

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