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Wednesday, October 05, 2016
Lenovo to Take Over Fujitsu's PC Business


Lenovo Group plans to take Fujitsu 's personal computer operations under its wingto, as the Japanese company seeks to focus on higher-priority areas such as information technology services.

The two companies aim to reach a deal this month, according to Nikkei. One proposal would have the Fujitsu group transfer its PC design, development and manufacturing operations to a Lenovo-led joint venture. Another option involves Lenovo taking a majority stake in Fujitsu's PC subsidiary. About 2,000 Fujitsu employees likely would move under Lenovo's umbrella.

Japan accounts for a majority of the PC business for Fujitsu, and it ranks second in the country behind NEC Lenovo Japan Group, a joint venture between NEC and Lenovo formed in 2011.

Fujitsu, seeing substantial future growth as unlikely, spun off the business into a separate company in February. Talks broke down regarding a three-way merger with Toshiba's PC business and Vaio -- which was split off from Sony in 2014 -- leaving Fujitsu to seek other restructuring options.

A future merger with the NEC-Lenovo venture would not be out of the question.



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