Levovo announces plans to expand through acquisitions

Chinese personal-computer giant Lenovo Group Ltd. 0992.HK +1.45%said Tuesday it is still looking to acquisitions to fuel growth, less than two months after unveiling a pair of deals worth $5 billion that already threaten to stretch the company’s resources. The two deals—$2.3 billion for International Business Machines Corp.’s IBM +0.54% low-end server business and $2.91 billion for Google Inc. GOOG +1.61% ‘s Motorola Mobility handset operations—are part of Lenovo’s efforts to diversify beyond PCs, which have been hit by weak demand for desktop and laptop computers world-wide. Lenovo, which last year became the world’s largest PC maker by shipments, has been looking for new sources of growth, focusing mainly on smartphones and enterprise products such as computer servers and storage systems.