Just yesterday we reported on the rumors of Lenovo and NEC joining forces. Now we have another report originating from the Nikkei Business Daily confirming that the two will engage in a joint venture, with an official announcement coming Thursday.
Lenovo will own a 51% majority stake in NEC Personal Products Ltd., the PC arm of NEC. All of NEC’s PC operations will be part of this joint venture, with all development, production, and parts procurement being shared by both firms.
All of NEC’s current PC operations will be absorbed into this joint veture, with NEC’s current PCs remaining in the market and being supported by NEC.
As expected, NEC is also looking to leverage their connection with Lenovo to help break into the Chinese market. Since it seems they’re giving up the PC side of things, and Lenovo is steadfast in keeping their position in the PC market, NEC might be aiming to grow their IT business in China.
This sounds a lot like when Lenovo bought IBM’s PC division. Time will tell if the NEC brand is eventually replaced by Lenovo’s.
Source: [Reuters]
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