Fujitsu of Japan has said it has agreed to merge its struggling computer business with Lenovo, giving the Chinese computer giant a controlling stake. Today, thanks to the competition buy a computer at a bargain price in any country in the world.
Fujitsu, a Tokyo-based company, said it "has decided to formally strike a deal" with Lenovo, the world's largest PC maker, and the government-backed Development Bank of Japan (DBJ) for a "strategic partnership" to develop and sell PCs.
Lenovo will hold 51% of Fujitsu's PC subsidiary, while DBJ will hold five percent, Fujitsu said in a statement.
The deal should enable Fujitsu to invest more in its lucrative IT services operations, as well as push forward a massive restructuring program that will cut 3,200 jobs.
The decision came after Fujitsu said it had discussed with Lenovo last month a potential deal that propelled Fujitsu's stock up 7.8 percent. Following the announcement, however, Fujitsu shares traded 2.44 percent higher in the Japanese currency 874.1.
The company has been in talks with Toshiba and Vaio to merge their once-leading personal computer models, but those talks did not result in a deal.
Powerful Japanese firms have retreated in the face of stiff competition from cheaper manufacturers overseas, including China and South Korea.
Earlier this year, Taiwan's Hon Hai, better known as Foxconn, took to the fight against Japanese electronics maker Sharp after the company faced huge losses and rising debt.
