Toshiba Corp., Fujitsu Ltd. and Vaio Corp. were reported Friday to be in talks on consolidating their personal computer businesses.

A merger would create a behemoth with a commanding share of the domestic market. It would also represent a significant restructuring in the struggling industry, although its global impact may be small.

Analysts said the benefits of a tie-up are clear because the three PC makers have been looking to streamline their businesses in a shrinking market. But the analysts see limited scope for greater competitiveness, given there is little room for growth. They doubt the PC titan would be able to come up with new, must-have products, although each would bring special knowledge to the table.