<p>The Nikkei Business Daily said Lenovo planned to take a controlling interest in NEC’s PC unit. But a buy-out might be a delicate move as Japan eyes China’s growing clout, and sources told Reuters it was not clear what form the partnership might eventually take. <br /><br />Lenovo, ranked fourth in the global PC market behind Hewlett-Packard, Dell Inc and Taiwan’s Acer Inc, is looking to tap NEC’s technology for development and expand its share of the Japanese market, the Nikkei Business Daily said. NEC, which is the top maker in Japan’s mature PC market but does not rank in the top 10 globally, would likely see the tie-up as a chance to take advantage of the fast-growing Chinese market. <br /><br />Expand market share<br /><br />The Japanese company, with a market value of $7.6 billion, clocked sales of about ¥250 billion ($3 billion) from the PC business last year, accounting for rouvghly 7 per cent of its revenue, the Nikkei Business Dailysaid. <br /><br />A spokesman for NEC declined comment. Lenovo declined to confirm the report, but said the company was always looking at ways to expand its market share and talking to potential partners. <br /><br />NEC, which controlled about 18 per cent of the Japanese PC market in 2009 — expects the PC business to post a profit in the year to March 31. Lenovo sells around one in four PCs in its home market. NEC-branded PCs are expected to remain on the market once the deal is concluded, the Nikkei reported. <br /><br />If the deal goes ahead, it would add to a growing trend of Chinese companies investing in Japan Inc, despite a strong yen. In 2010, according to Thomson Reuters data, acquisitions by Chinese firms in Japan totaled ¥11.8 billion, 6 per cent more than in 2009 and 52 times more than in 2008.</p>
<p>The Nikkei Business Daily said Lenovo planned to take a controlling interest in NEC’s PC unit. But a buy-out might be a delicate move as Japan eyes China’s growing clout, and sources told Reuters it was not clear what form the partnership might eventually take. <br /><br />Lenovo, ranked fourth in the global PC market behind Hewlett-Packard, Dell Inc and Taiwan’s Acer Inc, is looking to tap NEC’s technology for development and expand its share of the Japanese market, the Nikkei Business Daily said. NEC, which is the top maker in Japan’s mature PC market but does not rank in the top 10 globally, would likely see the tie-up as a chance to take advantage of the fast-growing Chinese market. <br /><br />Expand market share<br /><br />The Japanese company, with a market value of $7.6 billion, clocked sales of about ¥250 billion ($3 billion) from the PC business last year, accounting for rouvghly 7 per cent of its revenue, the Nikkei Business Dailysaid. <br /><br />A spokesman for NEC declined comment. Lenovo declined to confirm the report, but said the company was always looking at ways to expand its market share and talking to potential partners. <br /><br />NEC, which controlled about 18 per cent of the Japanese PC market in 2009 — expects the PC business to post a profit in the year to March 31. Lenovo sells around one in four PCs in its home market. NEC-branded PCs are expected to remain on the market once the deal is concluded, the Nikkei reported. <br /><br />If the deal goes ahead, it would add to a growing trend of Chinese companies investing in Japan Inc, despite a strong yen. In 2010, according to Thomson Reuters data, acquisitions by Chinese firms in Japan totaled ¥11.8 billion, 6 per cent more than in 2009 and 52 times more than in 2008.</p>