NEC And Lenovo Form Joint Venture

Japan's NEC and China's Lenovo, two of the world's largest personal P.C. makers, have voiced an consent to settle a J.V. in Japan.

Lenovo will take a 51% interest in NEC Lenovo Japan Group, with NEC receiving the outstanding 49%.

NEC will take $175m (110m) by an situation of Lenovo shares.

In a joint statement, the two companies mentioned the treat would give them "enhanced product portfolios and stretched placement channels".

Under the conditions of the deal, Hideyo Takasu, now boss of NEC Personal Products, will turn boss and arch senior manager of the new venture.

Roderick Lappin, now boss of Lenovo Japan, will turn senior manager chairman.

The two brand names will go on to be used.

Lenovo and NEC have moreover concluded to confer serve co-operation in other areas, inclusive selling PCs and building new gadgets such as tablets.

The treat is approaching to be sealed by 30 June.

"The consent with NEC is a best fit for the strategy," mentioned Lenovo's arch senior manager Yang Yuanqing.

"It reinforces the undertaking to the core Personal Computer business while, at the same time, providing critical new opportunities for expansion in Japan."

Nobuhiro Endo, boss of NEC, said: "Lenovo is the correct associate at the correct time for NEC, and you think that you are creating a vital attribute today that will gain NEC and the customers for many years to come".