This Reuters interview with Lenovo Group Ltd. makes no mention of future acquisitions, but it's hard to see how the Chinese computer maker could attain its lofty goals — Chairman Yang Yuanqing projects an eventual 40% overseas market share — without doing some serious shopping.

And, if it is prepared to buy, what would it buy? When the company's arch rival Acer Inc. agreed to buy Gateway Inc. last month for $710 million, it scored not just the company widely considered the most eligible PC maker for sale, but likely Packard Bell BV, which has a strong presence in Europe, as well. Under the unusual terms of Acer's purchase of Gateway, Gateway disclosed that it has rights of first refusal to buy Packard Bell, which would give Acer a huge boost in Europe.

There are hundreds and maybe thousands of smaller computer and computer peripherals makers that might be available for sale, but for Lenovo to grow in this manner would require a whole series of purchases. And expanding overseas isn't the company's only challenge. It's also facing intensified competition from U.S. PC makers including Hewlett-Packard Co. and Dell Inc. in its home market. —Andrea Orr

See Reuters interview
See Aug. 27 story on TheDeal.com
See Sept. 4 Tech Confidential post

Tags: deals, m&a, mergers