Lenovo, the world's largest maker of PCs, is in talks to buy Fujitsu's PC business, reports Nikkei Asian Review.
The Chinese firm and its Japanese counterparts will reach a deal within this month, the report says. Japan's Fujitsu Group may transfer its design, development, and manufacturing operations for PCs to Lenovo's joint venture or give the Chinese firm a majority stake in its PC firm.
In February, Fujitsu spun off its PC unit as it was no longer prioritized. According to Nikkei, the business has some 2,000 employees.
Fujitsu is ranked second in PC shipment in Japan -- runner-up to Lenovo and compatriot NEC's joint venture -- and moves 4 million units in the last fiscal year ended March, the report says. The company lost 10 billion yen ($96.5 million) that year and has been pushed by the rise in smartphones and tablets.
Earlier, a three way merger talk with Toshiba and Vaio to combine their PC businesses failed, the report added.