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.