Following the Galaxy Note 7 fiasco, Samsung announced a broad range of changes to all levels of its business operations. From management reforms and possible restructurings to improved quality assurance practices and more transparent policies, the South Korean tech giant is adamant to change its ways and win back the hearts of consumers worldwide. Among other things, this also includes streamlining its vast portfolio of operations and focusing on its core business. More specifically, the Seoul-based conglomerate recently approved the sale of its printing business to HP for $1.05 billion, and according to latest developments, Samsung isn't quite done with selling its secondary operations.
As reported by the South Korean media outlet The Bell, Samsung is currently negotiating with the Chinese tech giant Lenovo over selling its PC business. Seeing how Lenovo is the largest PC manufacturer in the world with a history of acquiring related operations, this wouldn't be the most surprising turn of events we've seen this year. Two years ago, Lenovo purchased Sony's VAIO PC unit for an undisclosed amount, and if latest reports are to be believed, the Beijing-based conglomerate is now interested in expanding its operations once again. More specifically, in addition to Samsung, Lenovo is currently also negotiating a purchase of Fujitsu's PC business. However, it is still unclear whether these two potential acquisitions are mutually exclusive, i.e. would Lenovo drop the idea of purchasing's Samsung PC business if it manages to acquire Fujitsu's unit first and vice versa.
In any case, The Bell reports that Samsung has hired a US law firm Paul Hastings to help with the talks but is apparently conducting negotiations with Lenovo without a financial advisor. On the other hand, the UK bank Freshfields Bruckhaus Deringer is doing Lenovo's bidding. According to South Korean news outlets, the deal will likely be valued at over 1 trillion won, i.e. $850 million. In any case, this is likely yet another step in Samsung's endeavor to minimize quarterly losses incurred by the Galaxy Note 7 fiasco which reportedly cost the company over $3 billion. With that in mind, if Samsung and Lenovo manage to come to an agreement, the former will certainly push for the transaction to be completed as soon as possible, so more information is bound to follow soon.