Fujitsu to divest its phone business

The bidding for the sale is set to begin from September with expected proceeds in the range of hundreds of millions.

A Japanese business daily has reported, Fujitsu Ltd is looking at options to divest its mobile operations in the face of fierce competition from bigger rivals.

Last February, Fujitsu spun off its mobile phone operations into a separate company in the hopes of reaping the benefits of the highly lucrative smartphone market. To this end, it had sourced investment funds from a variety of companies, including Britain’s CVC Capital Partners Ltd, Japan’s Polaris Capital Group China’s Lenovo Group Ltd.

The first round of bidding is likely to begin on September and is expected to bring offers in the hundreds of millions of dollars (tens of billions of yen), said the Nikkei.

Although Fujitsu will stop developing and manufacturing mobile phones, it will however keep a minority stake in the business so as to keep its brand alive, said Nikkei’s report.

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