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Lenovo and NEC to combine PC ops

JV established in Japan and... er... Holland

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It's official: after past denials, Lenovo and NEC are combining their PC operations - in Japan for now, but possibly further afield in due course.

The two companies will merge their Japanese operations into a joint-venture company, NEC Lenovo Japan Group.

The announcement doesn't contain the T word, but we have to assume Japanese consumers will soon be offered NEC Lenovo ThinkPads down the line.

NEC is already the biggest-selling PC brand in Japan - the world's third largest PC market, apparently - and the addition of Lenovo's contribution will only cement that lead.

NEC will get $175m worth of Lenovo shares for its part in the deal, for which it gets a 49 per cent stake - Lenovo will get the remaining 51 per cent. But an NEC executive will run the JV

Will the deal expand beyond Japan's shores? It's possible. The deal involves the creation, of all things, of a Dutch JV, which is either a clever legal and/or financial construction, or the basis of expanding the merger into Europe and beyond. ®

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