Co-operation with Google key for Lenovo's Motorola deal

While investors look warily at Lenovo's bold acquisition of Motorola Mobility, the computer giant sees the beginning of a beautiful friendship with Google, which will become a high-profile shareholder when the deal is completed.

Beyond getting the Motorola brand, the smartphone maker's engineering expertise and access to more markets worldwide, Lenovo relished "the opportunity for future co-operation with Google", Wong Wai-ming, the chief financial officer at Lenovo, said in a recent interview.

Lenovo, the world's largest supplier of personal computers, agreed last month to acquire Google's loss-making Motorola operation for US$2.91 billion, payable in cash, shares and a three-year promissory note. The deal pushes up Lenovo as the world's third-largest supplier of smartphones.

Wong said Google, which will own shares in Lenovo worth US$750 million at the close of the transaction, was expected to "share their view of Lenovo's business" as part of the strategic tie-up.

"This acquisition is much more than getting scale [in the smartphone market]," he said.

Internet search kingpin Google, meanwhile, would gain equity in a company with a leading position in personal computers, smartphones and media tablets. Lenovo was the world's No4 tablet brand in the third quarter of last year.