Fujitsu and Lenovo edge closer to PC deal

Fujitsu and Lenovo edge closer to PC deal

Vendors expected to reach agreement “soon”

Fujitsu is looking to finalise an agreement "soon" on integrating its personal computer business with Lenovo, according to company president Tatsuya Tanaka.

"We are in the final stages of working out how best to create synergies for our two companies," Tanaka said at a press conference. "We expect to wrap it up soon."

In October 2016, the company said it was in talks with the world’s largest PC manufacturer to cooperate in the design and manufacture of PCs, with both parties aiming to have finalised an agreement by the end of March.

"It's not like something unexpected happened, but we are trying to discuss everything thoroughly," Tanaka added.

Fujitsu has been considering the future of its PC business for a number of years.

The company transferred its Japan PC business to FCCL, a newly established wholly owned subsidiary of Fujitsu, on 1 February, 2016. Since then, the organisation has been considering various options to ensure the future growth of its PC business.

For Lenovo, such a deal could help boost its purchasing power and consolidate its footing in a PC market where profit margins are thin. The company bought IBM’s PC division in 2005 and created a PC joint venture with NEC Corp in 2011.

"Details of any potential cooperation remain under discussion and there is no timeframe to communicate at this time," Charlotte West, a spokesperson for Lenovo told Reuters.

When the potential deal was revealed in October 2016, it was thought that both parties would strike an agreement as early as the end of that month, with one proposed form of the deal seeing Fujitsu transfer its PC manufacturing, development, and design operations to a Lenovo-led joint venture, according to media outlet, Nikkei Asian Review.

Another proposal put forward at the time proposed Lenovo take a majority stake in Fujitsu’s PC business, with around 2,000 Fujitsu employees, transferred to Lenovo’s operational jurisdiction.

“Through the cooperation, the two companies aim to create a successful model that leverages Fujitsu’s global sales, customer support, R&D and manufacturing capabilities together with Lenovo’s operational excellence to improve competitiveness in the dynamic global PC market,” Lenovo said in a statement last year.

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