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Jan 26 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
NEC-brand PCs will remain in the market with NEC continuing
to provide after-sales service to existing customers, the daily
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