China-based PC vendor Lenovo, on January 27, announced it will establish a joint venture, NEC Lenovo Japan Group, with NEC. Lenovo will hold a 51% stake in the newly formed company and NEC 49%. Meanwhile, Lenovo will pay NEC US$175 million, which Lenovo will raise through releasing new shares.
The joint venture's mission is to expand both its enterprise and consumer PC sales in Japan with the whole transaction to be completed by June 30.
NEC's president of personal product division, Hideyo Takasu will become president and CEO of the new joint venture with Lenovo Japan's chairman and president Roderick Lappin to become executive chairman. In the future, both Lenovo and NEC's brand names will continue to exist and the two firms' PC businesses will also be maintained.
Sources from PC players noted that the cooperation will allow Lenovo to advance significantly into Japan, the third-largest PC market worldwide, as well as help the two companies expand their economic scale and lower purchasing costs. Combining the two's PC shipments, Lenovo's share in the global PC market would make it one of the top-three players.
Source: DigiTimes
