Lenovo tipped to take over Fujitsu's PC business
Industry consolidation could take the Chinese technology giant’s share in Japan’s personal computer market to 40 per cent
Lenovo Group looks poised to expand its operations in Japan, the world’s third-largest information technology market, as Fujitsu contemplates divesting its personal computer business to the Chinese hi-tech giant.
The Tokyo-based company and Lenovo, the world’s biggest personal computer supplier, plan to reach a deal this month, the Nikkei financial newspaper reported earlier on the same day, without citing a source.
It would not be without precedent for Fujitsu to give the business away to Lenovo, or even pay Lenovo to take it
Lenovo spokesman Raymond Gorman said the company does not comment on rumours.
In February, Fujitsu spun off its personal computer and smartphone businesses into two separate companies, Fujitsu Client Computing and Fujitsu Connected Technologies.
That split was apparently geared towards sharpening the 81-year-old company’s focus on its higher-margin businesses, such as information technology services and computer servers.
Bernstein Research senior analyst Alberto Moel said one acquisition scenario may involve Fujitsu transferring its personal computer design, development and manufacturing operations to a new Lenovo-led joint venture.
“Another option involves Lenovo taking a majority stake in Fujitsu’s personal computer subsidiary. About 2,000 Fujitsu employees would likely move under Lenovo’s umbrella,” Moel said.
