IT and networking products and services provider NEC is in talks to try to sells its mobile phone division, with Lenovo among the potential buyers.

IT and networking products and services provider NEC is in talks to try to sells its mobile phone division, with Lenovo among the potential buyers.

 
Sources cited by Reuters said that the companies are currently locked in negotiations, with NEC hoping to sell the unit to restore the company to profitability after two years of losses.
 
Lenovo is not the only buyer NEC is considering, with reports suggesting that the Japense firm is also in talks with domestic buyers. At this stage it is not clear who these are, how many companies are interested, and how much money is on the table.
 
 
“Amid the rapidly changing market we are considering a number of ways to bolster the competitiveness of our mobile phone business, but nothing has been decided,” said NEC in a statement following initial media coverage.
 
Smaller firms like NEC are struggling to keep up with larger mobile rivals like Samsung and Apple, but Lenovo has been aggressively moving into the smartphone market after success in China. If it secures the NEC mobile assets it will give it an extra boost to take on the top dogs.
 
Source: Reuters