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It appears that a new PC giant might be in the making. According to a new report three big players in the PC industry are likely to merge and form a true giant in the market. Toshiba, Fujitsu and Vaio, the PC business that Sony spun off, will merge and create a new entity to rival the likes of Lenovo which is undoubtedly one of the biggest PC makers in the market.

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Bloomberg News reports that the three entities will merge to form a single PC maker. Hidemi Moue, CEO of Japan Industrial Partners which owns Vaio, has said that this deal will be formally announced by the end of next month. It’s unclear what the new entity will be called and what products it’s going to come out with initially.

Consolidation in the PC markets has consistently been predicted. This news comes shortly after Toshiba confirmed that it’s going to remain in the PC market even though it cut close to 8,000 jobs in December last year. The company also said that it would consider “alliances with third-party companies.”

HP, Dell and Lenovo are the three top PC makers so consolidation between the small players could go a long way in giving them a run for their money.

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