It is reported that Lenovo Group and NEC Corporation are negotiating on the integration of the two PC businesses and have entered the final stage. If it does, both parties' PC development, production, and raw material procurement will be integrated to a certain extent in order to increase market competitiveness against global giants such as Hewlett-Packard. However, NEC branded PC products will remain on the market.
NEC's PC business had a revenue of about 250 billion yen (20 billion yuan) last year, accounting for 7% of the company's total revenue. It controls 12% of the PC market share in Japan, but it is still less than one percentage point in the global market. Lenovo’s domestic share in China is 27%, and its global share is around 8%, ranking fourth after HP, Dell, and Acer. If NEC's PC business is available, Lenovo’s share will surpass Acer and re-enter the top three ranks.
Lenovo responded quickly to the news, saying that it has not ruled out the possibility of acquiring shares in the NEC PC business subsidiary, but did not comment on the rumors.
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