Lenovo to team up with NEC on PCs -

Updates to this story

Chinese PC contender Lenovo and Japanese giant NEC are in the process of creating a joint venture to make further inroads into the PC market, according to a report from Japan.

Nikkei.com said that Lenovo will probably be the major shareholder in NEC Personal Products, but workers in Japan won’t be laid off.

NEC is the leading player in the Japanese home market but has failed so far to extend its reach in the world at large, despite repeated attempts. Lenovo, which bought IBM’s PC business, is number one in China.

If the deal comes off, and nikkei.com regards it as highly likely, it would put a Lenovo-NEC combine in a position to challenge Acer, Dell and HP – they account for around a third of PC sales worldwide.

A JV between the two would also catapult Lenovo into a higher position in Japan, where it struggles along at the bottom end of the top 10 manufacturers.