For Lenovo, there is no way to go but up and this was evident when news about its “strategic alliance” with NEC went around. The China-based computer manufacturer established a partnership with NEC to create the new NEC Lenovo Japan Group, which could be the largest PC maker in Japan.
Under the terms of the deal, Lenovo will take 51 percent of the shares and NEC will own the remaining 49 percent, as well as its choice of first CEO (selecting its own Hideyo Takasu in the process). Lenovo will also beef up NEC’s coffers with US$175 million.
Formal contract signing is expected to be completed by the end of June 2011. However, both companies will continue to sell products under their respective brands, as this “merger” will only involve collaboration, economics of scale, harnessing operational synergies, and leveraging each other’s strengths.
Source: Engadget
