RPT-UPDATE 1-NEC Corp, Lenovo to launch PC joint venture-Nikkei
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Jan 26 (Reuters) - NEC Corp. (6701.T) and Lenovo Group Inc have agreed to launch a personal computer (PC) joint venture to compete with top-ranked PC manufacturers of Japan and China, the Nikkei business daily reported.
The venture, expected to be announced on Thursday, will integrate development, production and parts procurement by both the companies, the daily said.
Under the deal, Lenovo is expected to own a 51 percent stake in NEC Personal Products Ltd., a wholly owned NEC unit, the Nikkei said.
The Nikkei report said NEC will transfer all of its PC operations to this joint venture.
The joint company will churn out PCs at NEC Personal Products' factory in Yamagata Prefecture, according to the daily.
NEC-brand PCs will remain in the market with NEC continuing to provide after-sales service to existing customers, the daily said.
While handling tablets on its own, NEC is expected to examine ways in which it can cooperate with Lenovo in tapping the Chinese market, the Nikkei said. (Reporting by Tanya.Agrawal in Bangalore; Editing by Prem Udayabhanu)