Lenovo forms JV with NEC, buys its way into Japan

Summary:Chinese firm Lenovo has formed a joint venture with NEC in a move to give it an immediate presence in Japan, the world's third largest PC market.

Chinese firm Lenovo has formed a joint venture with NEC, in a move to give it an immediate presence in Japan. The transaction creating the NEC Lenovo Japan Group will be completed by June 30, and will offer both enterprise and consumer products to the world's third largest PC market. Both companies will continue to maintain separate product branding in Japan; Lenovo retains 51 percent ownership in the new venture.

The JV will net $175 million for NEC, which Lenovo will pay up front by issuing new shares. Both companies will use the collaboration to negotiate better hardware component deals, making the new company a powerful entrant into the Japanese market. The joint venture will push Lenovo into the top three PC makers.

Topics: Lenovo

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James Kendrick has been using mobile devices since they weighed 30 pounds, and has been sharing his insights on mobile technology for almost that long. Prior to joining ZDNet, James was the Founding Editor of jkOnTheRun, a CNET Top 100 Tech Blog that was acquired by GigaOM in 2008 and is now part of that prestigious tech network. James' w... Full Bio

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