China-based Lenovo group is rumoured to be in talks with NEC to merge.
Lenovo is trying to buy a majority stake in NEC`s PC arm in a bid to expand into Japan`s PC market, according to Japanese news reports.
NEC acknowledged the reports in a statement but has not issued any announcement about the PC business. No decision had been made about the PC business, the company said.
Experts have said that Lenovo has recently benefitted from a booming Chinese PC market.
Lenovo held 10.4% of the global PC market for the fourth quarter of 2010, putting it in fourth place behind Hewlett-Packard, Dell and Acer, according to figures from IDC research.
Lenovo is no stranger to acquisitions, having bought IBM's PC division in 2005.