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Tuesday, October 31, 2017
Lenovo Could Take Over Fujitsu's PC Unit


Fujitsu and China's Lenovo Group will announce a final agreement to integrate their personal computer operations as soon as this week, the Nihon Keizai Shimbun reports, although Fujitsu is not confirming it yet.

The two companies announced a strategic partnership on PC operations in October 2016 and began integration talks soon after. But details concerning the integrated unit's structure after the deal had delayed the negotiations.

According to the report, Lenovo already has reached a basic agreement to buy into Fujitsu Client Computing. It is expected to take a 51% stake for around 20 billion yen ($176 million), while the Development Bank of Japan holds a 5% interest. Fujitsu's stake will likely decline from 100% to 44%, the report added.

"This report was not based on any official announcement made by Fujitsu. In February 2016 Fujitsu split off its PC business, and has been exploring a strategic cooperation in the PC business with Lenovo. However, Fujitsu has not yet reached an agreement with regard to entering into a contract. Negotiations toward entering into a contract as soon as possible remain ongoing," Fujitsu said.

Following the joint venture, Fujitsu Client Computing will maintain its laptop manufacturing center in Shimane Prefecture and its FMV brand of PCs, the Nikkei report added. Lenovo took control of Fujitsu compatriot NEC's personal computer operations in 2011 but will keep those Japanese facilities separate from Fujitsu's business.


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