Lenovo Confirms Smartphone Partnership Discussions

Lenovo has confirmed that it is involved in preliminary talks for a possible smartphone joint-venture in a statement to the Hong Kong stock exchange.

The Chinese PC manufacturer is already the second largest smartphone manufacturer in its homeland and has launched a number of tablet devices, including at Mobile World Congress in February.

The firm is apparently keen to strengthen its push into the mobile computing market through an acquisition or partnership with another manufacturer and rumours say it has been considering takeovers of BlackBerry or NEC .

Lenovo smartphone discussions

NEC’s mobile fortunes have fallen in recent years and earlier this year it was reported to be looking at a number of options for its mobile phone business.  Lenovo executives have also gone on record as saying that a takeover of BlackBerry “could possibly make sense.”

“The Board would like to inform the shareholders of the Company and potential investors that the Company is in preliminary negotiations with a party in connection with a potential joint venture transaction,” said Lenovo.

It is believed that NEC is the other party in the most recent discussions, although Lenovo was keen to stress that no transaction had been agreed.

“As at the date of this announcement, no material terms concerning the Potential Transaction have been agreed and the Company has not entered into any definitive agreement in relation to the Potential Transaction,” it said. “The Board will make further announcement as and when necessary in compliance with the Listing Rules and applicable laws when a legally binding agreement is signed or there is substantial development in relation to the Potential Transaction.”

Lenovo is currently the world’s second largest PC manufacturer and would be in a good position to secure any deal having just posted record results for its fiscal 2013 third quarter despite a declining market.

What do you know about Chinese tech? Find out with our quiz!