Japan's Fujitsu Eyeing PC Merger With China's Lenovo

TOKYO, (APP - UrduPoint / Pakistan Point News - 06th Oct, 2016 ) - Shares in Japanese IT giant Fujitsu soared Thursday on news it is considering merging its struggling personal computer division with China's Lenovo, the world's biggest PC maker.

A deal would mark the latest move by a Japanese firm to hive off struggling divisions to repair their finances, with Toshiba and Sony among a string of companies that have sold off assets in recent years.

Japanese personal computer makers have been scaling back their businesses as consumers move to mobile devices to check e-mail or use the web. The leading Nikkei business daily said the merger was among a number of options Fujitsu was considering for the money-losing unit.

It did not give financial details. In response, the conglomerate confirmed it is looking at "various possibilities including the reported move" but did not elaborate.

The firm's Tokyo-listed stock surged nearly six percent to close at 568.7 Yen Thursday.

Fujitsu has been struggling to find a partner for its PC unit. It had been in talks with Toshiba and Vaio to merge their once high-flying personal computer businesses, but the talks have yet to result in a deal.

The reports on Thursday from the Nikkei and other Japanese media said Fujitsu and lenovo were aiming to reach a deal by the end of this month as Fujitsu looks to focus more on its IT services business.

Possible options include transferring its PC design, development and manufacturing operations to a Lenovo-led joint venture, the Nikkei said. Another option could see Lenovo taking a majority stake in Fujitsu's PC subsidiary, it said, adding that either move could see about 2,000 Fujitsu employees move over to the Chinese company.