Lenovo and NEC said to be in PC merger talks

Lenovo is in discussions to take a major stake in NEC's PC business, according to numerous reports, some of which indicate that the move would effectively become an acquisition for Lenovo.

The merger story appears to have originated in Japanese newspaper reports, but has now been picked up widely by business media sources such as Reuters and The Wall Street Journal.

Lenovo, which is now the fourth largest PC maker, famously acquired IBM's PC division in 2005, and continues to sell products under the ThinkPad and ThinkCentre brands.

NEC's share of the PC market is small, but a takeover could help Lenovo to compete against its larger rivals globally and give it a greater presence in the Japanese market, commentators said.

Both companies have poured cold water on the reports, but statements issued by the pair do not actually amount to a denial that merger talks are talking place.

"Earlier today, reports concerning NEC's PC business were published within certain media. However, no announcement regarding the PC business has been issued by NEC, and no decisions have been made concerning the PC business in these reports," said an NEC statement.