TweakTown
Tech content trusted by users in North America and around the world
5,676 Reviews & Articles | 36,072 News Posts
Weekly Giveaway: Fractal Design Arc Cases Contest (Global Entry!)

European Commission clears Western Digital to acquire Hitachi's HDD business, $4.3 billion

WD gets the green light to acquire Hitachi's HDD business

| Business, Financial & Legal News | Posted: Nov 24, 2011 8:33 am

The European Commission has approved Western Digital to acquire Hitachi's hard drive business in a cash and stock transaction valued at $4.3 billion. Once the deal is finalized, Western Digital should cover roughly 50-percent of the market, but not until some requirements are met.

 

TweakTown image news/2/1/21676_8_european_commission_clears_western_digital_to_acquire_hitachi_s_hdd_business_4_3_billion.jpg

 

Requirements? Well, Western Digital will have to sell off some of its hard-disk drive production assets to a smaller competitor. The idea behind these requirements [in the eyes of the European Commission] is to ensure that competition in the industry is "fully restored before the merger is implemented."

 

Right now, there are four active hard-disk drive suppliers worldwide, Western Digital, Hitachi, the merged Seagate-Samsung and finally, Toshiba. The proposed acquisition of Hitachi GST, recently renamed Viviti Technologies, would have taken four down to three, leaving Toshiba, which holds 10-percent of the market, in a very uneasy position.

 

WD are unable to complete the acquisition until it finds a suitable buyer, which then has to be approved by the Commission.

NEWS SOURCE
Techspot.com

Related Tags

Further Reading: Read and find more Business, Financial & Legal news at our Business, Financial & Legal news index page.

Do you get our news RSS feed? Get It!

Post a Comment about this news

Latest Tech News Posts

View More News Posts

Latest Downloads

View More Latest Downloads

TweakTown Web Poll

Question: Did EA kill the Battlefield franchise with the terrible BF4 issues?

Yes, Battlefield is doomed

No, Battlefield will live on strong

I'm not sure, but I know EA needs to improve its game

or View the Results

View More Polls

Forum Activity

View More Forum Posts

Press Releases

View More Press Releases
Get TweakTown updates via Facebook!
Just click the "Like" button below