Forming the third-largest PC manufacturer, behind Hewlett-Packard and Dell, Acer has announced plans to acquire Gateway for $710 million. Chief critiques of foreign take-overs have signaled that Acer’s take-over will not encounter any political resistance.

A deal that includes $1.90 for each share of Gateway. Following the news release, shares of Gateway’s sored 60 cents for a close at $1.81. A price that does not even come close to its all time high of $84 a share.

It is still unclear if Acer will integrate Gateway into its current operation, or if Gateway will continue under its current brand. A deal that would increase the company’s economies-of-scale, a joint statement by Acer and Gateway said the deal would lead to lower component costs and a cost savings of more than $150 million.

This acquisition would improve Acer’s position within the United States, particularly in the lower-end of the market. Both Acer and Gateway specialize in value-based computer systems, relying heavily on Internet and resellers for sales growth.

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