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Lenovo says now not a good time to reach M&A deals

Now is not a good time to conduct mergers or acquisitions even though asset prices are relatively low, the top executive of Lenovo Group, the world's fourth-largest PC maker, said.

Lenovo executives have said that the company would be looking for possible acquisitions in emerging markets, especially Brazil, India and China.

But Chief Executive Officer Yang Yuanqing said that it could be difficult to reach agreements currently because target companies might be unwilling to sell at the current depressed prices, while Lenovo would not want to buy at high prices.

“Even if asset prices fall to a low level, it does not necessarily bring a deal to us,” Yang told reporters.

Yang added that he thought global economic conditions would probably bottom out by the middle of 2010.

Lenovo, which competes with Dell Inc and Hewlett Packard Co, realigned its business structure last week to focus on emerging and mature markets by creating two new business units, which replace the company's existing regional market organizations.

Lenovo, whose operations were previously all in China, now relies on the mainland for 45% of its global revenues after buying IBM's PC business in 2005 for $1.25 billion. (Reuters)