BEIJING, Dec. 8 (UPI) -- China's biggest computer maker, Lenovo Group, said Wednesday it has acquired a majority stake in IBM Corp's personal computer business for $1.75 billion.
IBM will keep an 18.9 percent stake in the company, said Lenovo's chairman, Liu Chuanzhi, Business Times reports.
Lenovo is taking over IBM's desktop PC business, including research and development and manufacturing for $1.25 billion in cash and shares, Liu told reporters. Including liabilities, the total value of the deal for IBM is worth $1.75 billion, the company said.
The acquisition would make Lenovo the third-largest PC company in the world, and entitle it to freely use IBM's brand name in five years' time.
Lenovo is China's biggest computer maker, claiming a 27 percent market share, and is also the biggest in Asia.