Fujitsu, Toshiba Reportedly Could Merge PC Businesses
One report says that Vaio also could be involved in the deal as vendor consolidation in the struggling PC market continues.Japanese tech vendors Toshiba and Fujitsu reportedly are considering merging their struggling PC units in an attempt to create a stronger company in a shrinking market and to save costs by ridding themselves of unprofitable businesses. Reuters and Asian business daily Nikkei reported that the companies are about to begin negotiating an agreement that could lead to the launch of a new company that would integrate everything from products and staff to global operations, R&D and sales. Nikkei reported the negotiations would involve a third company, Sony spinoff Vaio, and that the merged company would come under the control of Vaio and retain the Vaio name. However, a Vaio spokesperson told Reuters that the Nikkei report was speculation and that the company was not talking with any other companies about its PC operations. Citing unnamed sources, Reuters reported that the vendors are in the "early stages of exploring" an agreement and that there was no guarantee that a deal would be reached. Nikkei reported that the three companies will soon begin negotiating specifics of a deal, and that a basic agreement could be in place as early as this month. A combined company could launch in April 2016, the new site said.
The vendors hope to reduce indirect costs and strengthen their positions in the supply chain through a merger, but Nikkei also reported that the plan could be ditched if they decide it would not result in significant benefits. A combination of the three companies could create a vendor that would hold more than 30 percent of the Japanese market, more than the 26.3 percent currently held by leader NEC Lenovo Japan Group.