NEC and China's Lenovo said Thursday they will join forces to create the largest personal computer business in Japan, according to AP. NEC now has about a one-fifth share of Japan's PC market while Lenovo, the world's No. 4 PC maker, has about a 5 percent share. Lenovo will own 51 percent of the joint venture to be known as NEC Lenovo Group Japan. NEC Corp. will hold 49 percent. As part of the deal, NEC will receive Lenovo shares worth $175 million. Hideyo Takasu, president of NEC Personal Products, will become president and CEO of the venture while Roderick Lappin, currently Lenovo Japan president, will serve as executive chairman. The announcement came after NEC reported a wider net loss for the most recent quarter. Its losses swelled to 26.5 billion yen ($323 million) in the October-December quarter from 9.6 billion a year earlier as companies held back from investing in technology services. For the full fiscal year through March, NEC projects it will be in the black, earning a net profit of 15 billion yen. Group sales for the fiscal third quarter fell 12.7 percent to 720.7 billion yen.
