Lenovo completes strategic acquisition in Brazil

Chinese technology giant Lenovo marked the new year's first week by closing its acquisition of Comércio de Componentes Electrônicos (CCE), one of the largest manufacturers of personal computers and consumer electronics products in Brazil.

The HK$1.113 billion corporate takeover, which was first announced in September, is part of a series of strategic investments planned by Lenovo over the past two years to expand the number of plants and manufacturing joint ventures in key locations.

Lenovo, which unseated Hewlett-Packard in the third quarter to become the world's top supplier of personal computers, has been bolstering its in-house manufacturing capabilities as it prepares to compete worldwide in the smartphone, media tablet and internet-linked "smart" television markets.

In a filing with the Hong Kong stock exchange yesterday, Lenovo chairman and chief executive Yang Yuanqing said a cash payment of HK$779.139 million was made on Wednesday to CCE shareholders, led by the privately held Digibrás group.

Lenovo also issued 46.875 million company shares worth HK$333.891 million as part of the deal.

"CCE is an excellent fit with its four-screen product portfolio and a valuable manufacturing base in Brazil," Yang said in September.