HONG KONG – The Lenovo Group will continue its search for overseas acquisitions despite failing to buy Europe's Packard Bell last year, Lenovo company chairman Yang Yuanqing said.

Lenovo, which receives over half its sales from Asia, is reportedly interested in buying companies outside its main domestic market.  It is continuing to seek acquisitions after Acer foiled the company's plans to buy Netherlands-based Packard Bell in Europe last year, which was seen as an attempt to prevent Lenovo from gaining a foothold in the European market.

The South China Morning Post has reported Yang as saying the group would attempt to expand its overseas investments in emerging markets, including India, Brazil, Mexico, the Middle East and Eastern Europe. In preparation for this, Lenovo has increased its distribution networks in both India and Eastern Europe.

"It can help us be more competitive. If there is a good opportunity and it offers good returns to shareholders, we will definitely consider it." Yang told reporters while attending the annual meeting of the Chinese legislature in Beijing.

Lenovo's 2005 purchase of IBM’s PC business made the company among the world's biggest computer makers, and last month, the company also acquired Mexico's Sanmina-SCI, which makes computers and parts for IBM that are sold in the U.S. and Europe.

The Raleigh, North Carolina-based Lenovo, which also sells computers to Japan, is planning to enter the consumer electronics market in that country as well, but reportedly will not purchase a company there, according to Yang.

"We are confident of growing our operations in 2008," Yang said.

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