Lenovo to buy Brazil's CCE outright for US$148m
Xinhua
2012-09-07
17:24 (GMT+8)
Yang Yuanqing, CEO of Lenovo, announces the deal at a press conference, Sept. 5. (Photo/Xinhua)
Chinese PC maker Lenovo has said it will acquire Brazilian consumer electronics manufacturer CCE in order to increase its presence in the Latin American market.
Lenovo, the world's second-largest PC producer by sales, will pay 300 million reals (US$148 million) in both cash and shares for a 100% stake in CCE, the company said late Wednesday.
The deal, scheduled to be completed by the first quarter of 2013, will more than double Lenovo's PC market share in Brazil, the world's third-largest PC market after China and the United States,
according to Yang Yuanqing, chairman and CEO of the Lenovo Group.
The takeover will expand Lenovo's market share in Brazil from 3.6% to 7% in combination with that of CCE, whose revenues hit around US$792 million in 2011.
Roberto Sverner, CCE's founder and CEO, said the acquisition will make CCE's products more competitive and help increase the company's presence.
Lenovo and CCE's brands, as well as CCE's operations, will remain unchanged after the takeover, according to Lenovo.
