In a deal worth nearly $200 million, Lenovo is doubling down on the PC business in Japan.
Lenovo is buying out virtually all the common shares of its partner NEC in a PC joint venture that has become the top computer seller in Japan.
The move came after Lenovo exercised its rights in the JV agreement, NEC disclosed on its website.
“In accordance with discussions between Lenovo and NEC and pursuant to the joint venture agreement between the parties, Lenovo exercised a call option today requiring NEC to sell to Lenovo a certain portion of LNH’s ordinary shares held by NEC,” NEC noted.
The buy came after NEC recently disclosed plans to sell some of its shares. China Daily reported the transaction price at $195 million.
NEC said it will retain some 34 percent control of the JV through “deferred shares” that were not part of the deal.
Lenovo decided to go ahead and buy 44 percent of NEC’s ordinary shares even as global PC sales continue to decline. Lenovo, which operates one of its two executive headquarters in Morrisville, is the market leader.
“The global PC market won’t go down forever,” Lenovo chair and CEO Yang Yuanqing said recently.
Lenovo and NEC formed the joint venture in July 2011 with Lenovo holding 51 percent of the shares.
An analyst at research firm Gartner told China Daily that Lenovo has a 25 percent market share in Japan and did well in that country last year.
“Its strong performance in both the consumer and the business PC arenas is a good reason for this deal,” said Kanae Maite.
