Lenovo acquired a Brazilian competitor to circumvent h the country’s high taxes on imported electronic goods, gaining a foothold into one of the world’s fastest growing PC market.
Lenovo has been providing NASAs astronauts with their computers since 1995. But despite cornering the market in space, ThinkPads were hard to come by in Brazil.
Lenovo's desire to have a presence in Brazil is understandable. As a member of the BRICS, an association of the world’s five largest emerging economies, and with the 2014 World Cup and 2016 Olympics both taking place in this vibrant country, the Brazilian economy has further growth potential.
But with taxes on imported electronics as high as 43 percent compared to 2.75 percent on locally produced products, Lenovo wasn't in any position to get a foothold in Brazil.
million USD has been invested by Lenovo in research and development in Brazil since its acquisition of CCE in 2012.
The deal, completed in September 2012, has benefited Lenovo, CCE's shareholders and the Brazilian economy.
Credit Suisse's solution was radical, but rational. We facilitated Lenovo's acquisition of CCE, Brazil's largest domestic electronics manufacturer.
The deal, completed in September 2012, has benefited Lenovo, CCE's shareholders and the Brazilian economy. Lenovo has invested 130 million US dollars in research and development (R&D) in Brazil, while simultaneously gaining access to one of the world's fastest growing PC markets.
Even for the company that provides NASA's computers, that's one giant leap.
First large M&A transaction between Chinese and Brazilian technology companies
In September 2012, Lenovo announced the acquisition of CCE, the leading producer of PCs and consumer electronics in Brazil. A transaction of high strategic importance for Lenovo. Jan Metzger (Head of APAC TMT at Credit Suisse) started the relationship with Lenovo in November 2007. Today there is an established and trusted relationship between Lenovo and Credit Suisse, which results in regular interaction with Lenovo’s top management and working level teams. Lenovo is recognized as a very important client for Credit Suisse globally.