Lenovo acquires IBM's global PC business. On May 1, Lenovo Group Co., Ltd. completed the acquisition of IBM's global PC business. After the merger, the new Lenovo will become the world's third largest PC manufacturer with annual sales of US$13 billion. The new Lenovo has a one-third share of China's PC market and a leading position in the global enterprise PC market. New Lenovo's strong strengths include the internationally renowned "Think" laptop brand and China's well-known Lenovo brand. According to the terms of the acquisition, the transaction consideration paid by Lenovo to IBM was US$1.25 billion, including approximately US$650 million in cash and US$600 million based on the closing price of the stock on the last trading day before the transaction was announced in December 2004. Lenovo shares. After the transaction is completed, IBM owns 18.9% of Lenovo's shares. In addition, Lenovo will bear approximately $500 million in net debt from IBM. The merger of Lenovo PC will bring Lenovo's annual revenue to approximately US$13 billion, with annual sales of approximately 14 million personal computers. BenQ acquires Siemens' mobile phone business. Siemens' mobile phone business, which has sustained losses of 500 million euros (approximately US$613 million), was acquired by BenQ, Taiwan's largest mobile phone manufacturer, last month. As a result, BenQ has become the fourth largest mobile phone brand in the world. According to the agreement between the two parties, before October 1 this year, Siemens Group will make up for the previous losses of Siemens' mobile phone department and transfer its mobile phone department to BenQ in the form of net assets without liabilities. At the same time, Siemens will provide another 250 million euros in cash. and service payment BenQ, investing in the development, marketing and brand promotion of core patents for future mobile phones. In addition, Siemens will purchase the equity of BenQ for 50 million euros, which is about 2.5% based on the current BenQ stock price, and become a strategic shareholder of BenQ. In this transaction, BenQ will use all Siemens mobile phone-related patents for free. Siemens agreed in the deal with BenQ that starting from October 1, 2005, the Siemens mobile phone business unit will completely transfer its assets to BenQ on a net worth and liability-free basis, including cash, R&D centers, related intellectual property rights, and manufacturing. BenQ will begin to bear all production and labor expenses including factories, production equipment and personnel. Financial website reported on June 11 that according to a report by the Financial Times, Chinese home appliance manufacturer Qingdao Haier is considering acquiring General Electric’s (GE) home appliance business and has begun consulting with investment banks for consulting services, according to a person familiar with the matter. contact. Haier is one of many potential bidders around the world interested in acquiring GE's home appliance business, in a deal that could be worth as much as $7 billion. Appliance makers from South Korea, Germany, Turkey, Mexico, Sweden and Italy, as well as private equity groups, are considering acquiring the business, people familiar with the deal said. The business had sales of $7.2 billion last year but has long been one of GE's least profitable operations. In 2005, Haier joined forces with private equity groups Bain Capital and Blackstone to bid for another American icon, home appliance group Maytag, but ultimately lost out to Ripplewood Holdings. Since then, Chinese and Indian manufacturers have been bidding for U.S. manufacturing companies, hoping to combine their low-cost production facilities with American brands and distribution. Chinese home appliance and consumer appliance manufacturers are able to compete with Korean and Japanese rivals not only on price but also on quality. At the same time, for Chinese and Indian companies, funding is no longer a big obstacle compared to a few years ago. When it first considered acquiring Mattel, Haier lacked capital and had to rely on partners to fund the deal. But now the yuan has appreciated and the Chinese government is encouraging companies to invest overseas in an effort to offset some of its huge current account surplus. China Investment Corp executives say one of its tasks is to finance such overseas acquisitions. Banks such as China Development Bank (CDB) may also finance the bid or even take a stake in the deal. Although Haier now no longer needs the financial strength of its partners, management issues remain a weakness for Chinese companies. This means that Haier may consider forming strategic alliances with local partners in the United States. GE declined to comment, and Haier could not immediately be reached for comment.