Lenovo and NEC today announced a strategic partnership that will establish a joint venture between the two companies, forming the largest PC group in Japan.

 

The two companies will create NEC Lenovo Japan Group, and under this group will establish a new organisation known as Lenovo NEC Holdings B.V. (registered in the Netherlands). Lenovo will hold a 51% stake in the new joint venture, with NEC claiming the remaining 49% according to the terms of the agreement.

 

The venture willl enable Lenovo as well as NEC to grow their commercial and consumer PC businesses in Japan, the third largest PC market in the world. 

 

Hideyo Takasu, who is currently president of NEC’s Personal Products, will become president and CEO of this new joint venture, whilst Roderick Lappin, currently representative director and president, Lenovo (Japan) Ltd, will assume his new role of executive chairman, Lenovo (Japan) Ltd. and NEC Personal Computers, Ltd. The latter being a new company established as a result of separating NEC’s PC business from NEC Personal Products, Ltd. As the result of this transaction, NEC will receive $175 million from Lenovo via an issuing of Lenovo shares, upon its closing, which is expected to be concluded by 30 June 2011.

 

“The agreement with NEC is a perfect fit for our strategy. It reinforces our commitment to our core PC business while, at the same time, providing important new opportunities for growth in Japan,” said Yang Yuanqing, CEO, Lenovo. “We have a long history of innovation in Japan and a firm commitment to the Japanese market. Now, we are combining our global strength and momentum with NEC’s market leadership. It is the perfect partnership for us and for our customers.”

 

“Lenovo is the right partner at the right time for NEC, and we believe that we are creating a strategic relationship today that will benefit NEC and our customers for many years to come, stated Nobuhiro Endo, president of NEC. “We believe this alliance will further reinforce and expand our PC business in Japan, upholding the NEC brand name and will continue to provide Japanese PC users with products supported by high quality and service. Taking this strategic relationship as a first step, NEC will accelerate expansion of our IT business worldwide.”

 

Lenovo and NEC have also agreed to discuss further cooperation in other areas, such as selling computers and providing global support to Japanese companies operating outside of Japan, developing, producing, and selling devices such as tablets PCs, as well as selling additional IT platform products including servers.