Lenovo and NEC Joint Venture Creates Largest PC Group in Japan
Lenovo and NEC today announced a strategic relationship that creates a joint venture between the two companies and forms the largest PC group in Japan. The agreement aligns NEC, Japans number one PC company, with Lenovo, the fastest growing top-five PC maker in the world*. The new joint venture gives both Lenovo and NEC a unique opportunity 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.
Lenovo and NEC will form NEC Lenovo Japan Group, and under this group, Lenovo and NEC will establish a new organization known as Lenovo NEC Holdings B.V., registered in the Netherlands. Under the terms of the agreement, Lenovo will hold a 51 percent stake in the new joint venture, while NEC will hold a 49 percent stake. Hideyo Takasu, currently President, NEC Personal Products, Ltd., will become President and CEO of the new joint venture, while Roderick Lappin, currently Representative Director and President, Lenovo (Japan) Ltd., will become Executive Chairman. Lenovo (Japan) Ltd. and NEC Personal Computers, Ltd., a new company formed as a result of separating NECs PC business from NEC Personal Products, Ltd. will both become 100 percent subsidiary companies of the new joint venture. As the result of this transaction and upon closing, NEC will receive from Lenovo US$175million through an issue of Lenovo shares.
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