Lenovo said it will establish a joint venture, NEC Lenovo Japan Group, with NEC. Lenovo will hold a 51% stake in the newly formed company and NEC 49%.

The joint venture's mission is to expand both its enterprise and consumer PC sales in Japan with the whole transaction to be completed by June 30.

NEC's president of personal product division, Hideyo Takasu will become president and CEO of the new joint venture with Lenovo Japan's chairman and president Roderick Lappin to become executive chairman. In the future, both Lenovo and NEC's brand names will continue to exist and the two firms' PC businesses will also be maintained.

Lenovo will pay NEC US$175 million, which Lenovo will raise through releasing new shares.

By: DocMemory
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