Lenovo’s acquisition of German electronics firm Medion AG has cleared a huge regulatory approval.
The European Union, which is based in Brussels, approved the deal on Tuesday.
Reuters cited the value of the acquisition as $900 million. Initial media reports when the deal was announced in June was $672 million.
“The Commission’s assessment revealed that Lenovo and Medion combined market shares are generally moderate and that a number of credible competitors will remain active for those products,” the EU said.
“The main impact of the proposed operation would be in the PC markets in Germany and in Denmark, in particular for desktop and portable PCs. However, the combined market shares of the merged entity remain moderate and it will continue to face strong and effective competitors such as Acer, HP or Asus.
“The Commission therefore concluded that the proposed concentration would not significantly impede effective competition in the European Economic Area (EEA) 1 or any substantial part of it.”
Read the full statement here.
According to Reuters, the deal will give Lenovo a 7.5 percent market share in Europe.
Medion is a Germany-based manufacturer of a wide range of electronic equipment, including desktop and notebook PCs; peripherals to desktop PCs such as displays, memory and storage devices and printers, the EU noted.
The deal is the largest for Lenovo since it bought IBM’s PC division in 2004 for $1.75 billion. The deal closed in 2005.
Lenovo bases its headquarters in Morrisville, although most of its operations are located in China.
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