NEC in talks with Lenovo on selling mobile phone subsidiary
TOKYO, March 29 (Kyodo) — NEC Corp. is in talks with Chinese personal computer maker Lenovo Group Ltd. to sell its mobile phone subsidiary as part of its turnaround efforts, company sources said Friday.
The move to sell NEC CASIO Mobile Communications Ltd. follows sluggish performance by the subsidiary in the mobile phone sector amid strong competition from overseas rivals such as U.S. technology giant Apple Inc., which boasts the popular iPhone smartphones.
NEC will include the sale of the subsidiary in a business plan to be drafted probably in late April, the source said.
The Kawasaki-based mobile phone business firm was established in 2010 by merging the mobile phone operations of NEC, Casio Computer Co. and Hitachi Ltd.
NEC maintains a partnership with Lenovo in the personal computer business since 2011, and the formation of NEC CASIO Mobile Communications into a joint company remains a possibility, aside from a total sale, the sources said.