Chinese PC maker Lenovo has completed its acquisition of the Motorola handset unit from Google for $2.9bn (£1.8bn).

The purchase is likely to lead to the company making a fresh move into the US smartphone market, as it seeks to diversify its business and establish itself as a player in the global mobile market.

Motorola was acquired by Google in 2012 for $12.5bn, but the company has struggled to reverse its long-running decline. Google will retain a large number of Motorolas crucial patents as part of the deal with Lenovo.

“Today we achieved a historic milestone for Lenovo and for Motorola – and together we are ready to compete, grow and win in the global smartphone market,” said Yang Yuanqing, chairman and CEO of Lenovo. “By building a strong number three and a credible challenger to the top two in smartphones, we will give the market something it has needed: choice, competition and a new spark of innovation.

“This partnership has always been a perfect fit. Lenovo has a clear strategy, great global scale, and proven operation excellence. Motorola brings a strong presence in the US and other mature markets, great carrier relationships, an iconic brand, a strong IP portfolio and an incredibly talented team. This is a winning combination.”