Division to be headed by Motorola.
Lenovo has reportedly started the merger of its Mobile Business Group (MBG) into Motorola Mobility.
Discussions for a potential merger began in January last year, but the deal ran into several problems and was almost abandoned.
However, the companies have now decided to go ahead with the merger, as part of which, Lenovo employees will join Motorola and the company’s mobile workshop will also be integrated.
According to Xiaomi today, the Motorola team will lead the new team of experts from both companies.
After the completion of the deal, Lenovo‘s ZUK will become the company’s "flagship Internet brand" and Motorola will continue to sell devices in international markets.
While announcing its first quarter FY15-16 results, Lenovo hinted about the merger and said that it will continue to drive the overall mobile business, but will now rely on Motorola to design, develop and manufacture smartphone products.
Lenovo bought Motorola from Google for $2.91bn in 2014. As part of the buyout, Google continued to maintain ownership of a majority of Motorola Mobility patent portfolio.