Joint Venture.

In March 2016, ZCG purchased a 50% equity shareholding in Wallace Telecoms Co (WTC), a company operating in several countries where ZCG previously had no interests. The other 50% is held by Wolf Communications Co. The cost of the 50% equity shareholding was $45 million. ZCG is planning to account for its investment in WTC as a joint venture in the Group financial statements.

So i have a doubt in the above paragraph. I don’t understand as to how this is a joint venture arrangement. I’m confused here because only when a separate legal entity is created , joint venture arises and should be accounted for.
Here WTC Co. was in existence since a long time and so is not a separate entity created by the two companies owning 50% share.
As a result it should be accounted for as a normal acquisition.

However the model answer states that it is a joint venture arrangement and then states the potential audit risk.
Please help me clear this confusion