Lenovo, which is the world’s second largest PC company after HP, announced that it is buying the Brazil-based CCE Business which sells PCs and consumer electronics.
The acquisition - worth 300 million Brazilian Reals, (around £93 million) in a combination of cash and stock - comes more than one year after Lenovo purchased German PC manufacturer Medion to boost its share in the more mature European Markets.
BRIC countries (Brazil, Russia, India and China) have better growth prospects because of the sheer size of their markets. CCE Business will help Lenovo double its market share in Brazil almost overnight, propelling it from seventh to third place.
Yuanqing Yang, chairman and CEO, Lenovo Group, said that “It not only helps Lenovo rapidly expand its leadership here, but it also lays a foundation for our future PC+ vision”.
CCE’s CEO, Roberto Sverner, highlighted that the move coincides with the 2014 World Cup and the 2016 Olympics, two events that could be used by Lenovo to increase its global brand visibility.
Last week, we spoke to Lenovo’s European Director of Consumer Products EMEA, Volker Düring about last year’s acquisition of Medion and it seems that Lenovo will use the experience it gained last year to add value to the CCE business purchase.
The brand - which like Medion, seems to have been purchased for its geographical knowhow and expertise as well - will be allowed to work as a separate entity and will not be absorbed by Lenovo.