Lenovo and NEC Japan formally announced today a strategic partnership. The joint venture formed by both parties will become the largest PC manufacturer in Japan. The joint venture between the two companies is called NEC Lenovo Japan Group (NEC Lenovo Japan Group), which will be a new company registered in the Netherlands, named Lenovo NEC Holding B. V. (Lenovo NEC Holdings). Original Lenovo (Japan) Ltd. and NEC Personal Computer, Ltd. (NEC Personal Computer, Ltd.), which splits PC business from NEC Personal Products, will become wholly-owned subsidiaries of the joint venture.
Lenovo will hold 51% of the joint venture and NEC will hold 49%. The current president of NEC Personal Products Co., Ltd. Takasu Hideto will serve as CEO and CEO of the new company, while Roderick Lappin, currently president of Lenovo Japan, will serve as executive chairman of the joint venture.
Both parties stated that the newly formed joint venture company will combine the advantages of both parties and put NEC's good market reputation, product development strength, highly respected customer service and rich knowledge of Japanese customers' needs, Lenovo's scientific and technological strength, and strong global business growth. The combination of momentum and global supply chain will bring Japanese customers faster to innovative products that meet their needs and are competitively priced.
After the joint venture announcement, Lenovo and NEC's PC business in Japan will immediately merge to jointly produce, develop products and sell. The entire transaction is expected to be completed on June 30, 2011. Both companies expect that the existing personal computer business (including customer service, product delivery and after-sales maintenance) will remain unchanged during the transition from independent operations to joint ventures and in the future, and the brand names of NEC and Lenovo will be used.
After the completion of the transaction, Lenovo Group will issue additional US$175 million Lenovo Group shares to NEC. In addition, Lenovo and NEC also agreed to continue exploring the expansion of cooperation to more areas, including sales of personal computers and support to Japanese companies operating outside Japan, production and sales of products such as tablet PCs, and sales of other information technology such as servers. Platform products.
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