China's Lenovo Group is reportedly considering initiating a comprehensive offer to acquire the Canadian smartphone brand BlackBerry.
An insider revealed to local media that Lenovo has signed a confidentiality agreement with BlackBerry. Under this agreement, Lenovo will be able to check the financial accounts of BlackBerry and conduct due diligence. Neither Lenovo nor BlackBerry gave any comment on the news.
In September 2013, BlackBerry reportedly reached a USD4.7 billion initial acquisition agreement with Fairfax Financial Holdings, one of its largest shareholders.
The insider said Lenovo is one of the potential bidders who want to buy BlackBerry. Other potential bidders include Cerberus Capital Management and BlackBerry's co-founder Mike Lazaridis.
If Lenovo acquires BlackBerry, it will be one of the largest deals made by a Chinese company to acquire a Western company. It will also face the review of the Canadian and U.S. governments.