Japanese media are reporting that Chinese PC giant Lenovo is in talks with Fujitsu to buy its ailing PC business.

In the early 2000s, Fujitsu was one of the top 5 PC makers globally. Today, it's a loss-making enterprise that's seen its market eroded by smartphones and tablets. The margins have squeezed, and IT conglomerate Fujitsu has been working to offload its non-core businesses and improve profitability. The company spun off its PC division as a separate business in February, a move that's typically a precursor to a sale or other major restructuring option.

Fujitsu was initially hoping for a three-way merger with Vaio (Sony's former PC business, split off in 2014) and Toshiba's PC division. These talks collapsed after none of the companies involved wanted to hold a controlling stake, leading Fujitsu to enter discussions with Lenovo. The Beijing firm is promising to maintain existing factories and jobs, which will see around 2,000 people making the move to the Chinese company.

Should this sale happen, it would further entrench Lenovo's position as the world's biggest PC seller, with 21.1 percent of the global share according to IDC. It would also give the company control of about 40 percent of the Japanese PC market. Fujitsu holds the number two spot there, with top place going to the NEC Lenovo Japan Group. This joint venture was founded in 2011, with Lenovo earlier this year buying out most of NEC's stake (leaving the Japanese firm with just a five percent share). Sources speaking to the Wall Street Journal said that a similar plan was being considered for Fujitsu, with Lenovo owning a majority of the division and Fujitsu retaining a minority stake.

A Fujitsu spokesperson said that there has been no official announcement of any sale but confirmed that the company is "considering various possibilities, including what is being reported."