Chinese PC maker Lenovo has announced that it has reached an agreement with the Japanese electronics maker NEC and the two parties will jointly establish a PC joint venture, in which Lenovo will own a 51% stake and NEC will own the remaining 49%.

The report published by Lenovo shows that the company will set up the joint venture via its wholly-owned subsidiary Lenovo BV. Lenovo and NEC will integrate their respective PC businesses in Japan into this new joint venture; at the same time, Lenovo will issue USD175 million shares to NEC.

After the two parties complete the business transaction, they will make adjustments to the cash, debt and operating capital of the joint venture. The transaction is expected to close by June 30, 2011.

Yang Yuanqing, CEO of Lenovo, said that the agreement with NEC reinforces Lenovo's commitment to its core PC business while providing new opportunities for growth in Japan. The company is now combining its global strength and momentum with NEC's market leadership, forming the perfect partnership for Lenovo and its customers.

Nobuhiro Endo, president of NEC, said that NEC believes this alliance with Lenovo will enhance and expand its PC business in Japan, upholding the NEC brand name and will continue to provide Japanese PC users with products supported by high quality and service. Taking this strategic relationship as a first step, NEC will accelerate the expansion of its IT business worldwide.

In addition, Lenovo and NEC have also agreed to discuss further cooperation in other areas, including selling PCs and providing global support to Japanese companies operating outside Japan; developing, producing, and selling devices such as tablet computers; and selling additional IT platform products such as servers.