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European Commission - Press release

Mergers: Commission clears acquisition of Medion by Lenovo

Brussels, 26 July 2011 - The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the German electronic equipment supplier Medion by the Chinese computer technology group Lenovo. After examining the operation, the Commission concluded that the merged entity will continue to face several strong and effective competitors in the market.

The Commission's examination showed that the parties' activities overlap for desktop and portable PCs, PC monitors and certain computer accessories and peripherals.

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 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.

The transaction was notified to the Commission on 20 June 2011.

Lenovo is a Chinese manufacturer of desktop and notebook PCs, workstations, servers, storage drives and IT management software, and a provider of IT services.

Medion is a German 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.

Merger control rules and procedures

The Commission, in 1989, was given the power to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation). Its duty is to prevent concentrations that would significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

The vast majority of mergers does not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has a total of 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II).

A non-confidential version of today's decision will be available at:

Contacts :

Amelia Torres (+32 2 295 46 29)

Marisa Gonzalez Iglesias (+32 2 295 19 25)

1 :

The EU plus Norway, Iceland and Lichtenstein

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