Lenovo's laptop PCs are displayed at an electronic shop in Tokyo September 5, 2012. REUTERS/Kim Kyung-Hoon
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Japan’s Fujitsu said on Thursday it had agreed to merge its struggling PC business with Lenovo, giving the Chinese computer giant a controlling share of the business.

Tokyo-based Fujitsu said it had “decided to formally sign a deal” with Lenovo, the world’s largest PC maker, and the government-backed Development Bank of Japan (DBJ) on a “strategic partnership” to develop and sell PCs.

According to Reuters, Lenovo will pay $156.70 million in cash, and the rest based on performance to 2020, for a 51 percent stake Fujitsu Client Computing Ltd.

Lenovo and Fujitsu had first announced in October 2016 that they were exploring cooperations in their PC business.

News of the deal drove up Lenovo shares by as much as 5 percent on Thursday to their highest since August, but lower profits over July-September kept a lid on gains.