The two are in early talks, according to the Nikkei. Lenovo could either buy a majority stake in Fujitsu or there could be a merger. Nikkei has reported the matter citing anonymous sources.
Japan’s Nikkei business daily has reported that the Lenevo Group is set to bring Fujitsu personal computer business under its control, thus allowing Lenovo greater access, control and focus on its IT services and related businesses.
The business daily has reported that Lenovo and Fujitsu are likely to arrive at such a deal by the end of this month. The deal will result in 2,000 Fujitsu employees relocating to Lenovo, reported the paper citing anonymous sources.
With the news hitting the market, Fujitsu’s shares soared by 7% in early trade to hit their highest level since January. In comparison, Lenovo’s shares rose by just 1%.
According to the Nikkei, both companies could route the deal through a joint venture led by Lenovo, failing which, Lenovo could opt to buy a majority stake in Fujitsu.
The Nikkei did not mention the financial terms.
In its statement, Fujitsu said it was considering various options. It has yet to make a decision on which path it will take.
Lenovo declined requests for comments.
Incidentally, globally the demand for personal computers have been squeezed by the popularity of tablets and smartphones. Small manufacturers who lack the necessary production scale face an uncertain future.
However, during the second quarter, the world shipment of PCs were stronger than forecast. Nevertheless, the PC market shrank by 4.5% from a year earlier to 62.4 million units, as per IDC, a technology research company.
Of note is the fact that, 21.2% of those shipments were from Lenovo with HP Inc. trailing just behind with 20.8%. Dell’s shipments were at just 16%, while Asustek’s was 7.2%. Apple’s shipments were a negligible 7.1%
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