China’s biggest computer maker acquires IBM’s PC unit

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Wednesday, Dec. 8, 2004 | 9:15 a.m.

BEIJING -- Chinese computer maker Lenovo Group said today it will take over IBM's personal computer business, creating the world's third-largest PC maker in a $1.75 billion deal that announces China's ambitions to become a key player in the global industry.

The deal -- one of the biggest foreign acquisitions ever by a Chinese company -- was expected to quadruple sales of Lenovo, already Asia's biggest computer maker, the companies said.

It also extends IBM's long-running transition from leader and innovator in computer hardware to a dominant force in computer services and software.

and consulting.

Lenovo, formerly known as Legend, joins a wave of Chinese firms with aggressive plans to expand abroad.

"This acquisition will allow Chinese industry to make significant inroads on its path to globalization," Lenovo chairman Liu Chuanzhi said at a news conference. "It has changed the structure of the global PC manufacturing business."