Baidu Inc., a leading Internet company in China where it has over 700 million users, has bought a controlling interest in Peixe Urbano, the largest e-commerce company in Brazil, the Brazilian press reported.
Under the terms of the agreement, whose value was not disclosed, Baidu will become the main shareholder, the percentage was also not disclosed, but Peixe Urbano will keep its current management team.
Some Brazilian newspapers noted that in April Peixe Urbano had announced it was looking for new investments in order to fund growth.
“International expansion is a priority for Baidu and, under this strategy, Brazil is a key market, where over 50 million people already use our services every day. The acquisition of Peixe Urbano, one of the most widely-known and respected companies in the Brazilian Internet, demonstrates our commitment to investing in the development of the local market for the long-term,” Baidu’s managing director for global business said in a statement.
Baidu started operating in Brazil in November 2013 and, in July, during a visit by Chinese President Xi Jinping and the chief executive and founder of Baidu, Robin Li, to the country, the company announced the launch of its engine search in Portuguese.
At the same time the board of Baidu pledged to invest over 120 million reals in the Brazilian market over the next three years.
The Chinese company estimates that half of the world’s population will use its products by 2019 and considers Brazil to be a strategic market. (macauhub/BR/CN)