Chinese company Lenovo has bought IBM’s personal computer manufacturing business in a deal worth nearly one billion euros. In theory the sale benefits both sides – IBM is able to concentrate on its more profitable service businesses, while Lenovo gets the benefits of one of the world’s most powerful brands.

IBM, a pioneer of the PC market in the early 1980s, will keep a nearly 20 per cent stake in the computer production operation. Senior Vice President John Joyce: “The IBM brand will gain great recognition in China, the world’s fastest growing economy and the world’s fastest growing market for PCs.” Lenovo, which is hiring 10,000 IBM workers, now faces the challenge of making the business it has bought more profitable.

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