Lenovo to take over mobile phone joint venture

China's largest computer vendor says it has agreed to buy out its joint venture partner's stake in Lenovo Mobile Communication Technology because of the handset manufacturer's strong performance this year and its improving market share.

Lenovo Group, the world's third largest computer vendor after Dell and Hewlett-Packard, says a wholly owned subsidiary will pay Xiamen Overseas Chinese Electronic Company approximately 72 million renminbi (NZ$13 million) for its 19.2% share of Lenovo Mobile.

Lenovo Mobile will become a wholly owned subsidiary of Lenovo Group after the transaction, Lenovo says in a statement to the Stock Exchange of Hong Kong.

The acquisition requires regulatory approval by Chinese authorities before it can be completed. Lenovo plans to make a further announcement on the status of the deal if it has not closed by 18 February next year, the company says.