Chinese computer manufacturer Lenovo Group Limited has received approval from the regulatory authority of the European Commission to purchase Medion AG.
According to the Wall Street Journal, Lenovo is expecting to close the acquisition deal with German consumer electronics firm Medion AG very soon.
"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," an executive reviewing the deal at the EU stated.
The executive also added that the merger will make both the companies owner of 7.5 percent share in the computer market of Europe. Also the commission is sure that this deal will not thwart the atmosphere of competition the European computer industry.
Lenovo’s statement has come after the European Union on Tuesday approved the proposal filed by Lenovo to acquire 33.66 percent stake in the German company. Lenovo has offered $900 million for its stake in the company which will in turn help Lenovo create a consumer base in Europe.
Medion’s acquisition is Lenovo’s biggest bid after it took over the computer making business of International Business Machines (IBM) nearly six years ago.