Lenovo and NEC to combine their Japan PC businesses

China-based Lenovo and Japan's NEC Corporation have agreed to combine their personal computer (PC) businesses in Japan in a joint venture. At the outset, the Chinese company will have a 51% stake in the JV and NEC a 49% stake, but over time Lenovo is likely to take full control. NEC will be paid a maximum of $500 million for selling what is currently Japan’s largest PC business. The deal was announced in Tokyo last Thursday.

The JV will catapult Lenovo to the number one position in Japan's PC market from seventh at present. It will also allow both firms to grow their commercial and consumer PC businesses in Japan -- the third-largest PC market in the world -- through a stronger market position, enhanced product portfolios, and expanded distribution channels.