Friday, April 27, 2018
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Amazon Reports Huge Profits
Intel Reports Record First-quarter Revenue on Demand for Data Center Chips, 10nm Chips Coming in 2019
Azure and Office Power Microsoft's Third Quarter Results
AMD Zen CPU Architect Jim Keller Joins Intel
Under-display Fingerprint Sensor for Smartphones is the New Trend
EU to Regulate Tech Giants' Online Business Practices, Move to Tackle Online Disinformation
Chinese Smartphone Shipments Decline by 21 Percent in Q1 2018
Strong Switch Sales Boost Nintendo's Profit
Active Discussions
Which of these DVD media are the best, most durable?
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
Help make DVDInfoPro better with dvdinfomantis!!!
menu making
Optiarc AD-7260S review
cdrw trouble
 Home > News > General Computing > EU To I...
Last 7 Days News : SU MO TU WE TH FR SA All News

Monday, May 30, 2011
EU To Inverstigate Acquisitions In The Hard Disk Drive Sector


The European Commission has opened two separate in-depth investigations under the EU Merger Regulation into two proposed concentrations in the hard disk drive sector.

The first transaction concerns the planned acquisition of the HDD business of Samsung by Seagate Technology. The second transaction concerns the planned acquisition of the storage business of Hitachi by Western Digital.

Seagate Technology has said it wants to buy Samsung Electronics's hard disk drive unit for $1.4 billion. Western Digital plans to purchase Hitachi's hard disk drive business for $4.3 billion.

Commission Vice President in charge of competition policy Mr. Almunia said: "Hard drives are the backbone of the digital economy. The sector has already experienced significant consolidation and the proposed acquisitions will further reduce competition. The Commission will carefully examine if effective competition is preserved and innovation encouraged."

The Commission said that its initial market investigation had indicated that both transactions raised potential competition concerns.

There are currently five HDD manufacturers worldwide: Seagate, Western Digital, Hitachi (recently renamed Viviti Technologies) Toshiba and Samsung. A merger between Seagate/Samsung would consolidate Seagate's leading position in the overall market for HDDs, particularly in the manufacture of 3.5" desktop HDDs where it would only face two competitors (Western Digital and Hitachi). The Western Digital/Hitachi transaction, which was examined in the light of the previous deal, would create the world's market leader in the overall HDD market. For 3.5" desktop HDDs in particular, the only competitor would be Seagate/Samsung. For 2.5" mobile HDDs, it would only face Seagate/Samsung and Toshiba.

EU's market investigation also revealed concerns that the combined entity would source fewer heads from the merchant market.

"In combination with the Seagate/Samsung transaction, this may impact TDK's ability to invest in the development of more innovative heads and Toshiba's ability to compete in the HDD market, given its dependence on TDK heads. This could ultimately allow the merged entity to raise HDD prices," the Euroean Comission (EC) said.

EC also underlined concerns that the proposed transaction would reduce the available sources of HDDs to the detriment of ESD manufacturers so as to strengthen the combined entity's leading role in the ESD market. "This could negatively affect competition and innovation in the ESD market,' the EC said.

The Commission will now investigate the proposed mergers in-depth to determine whether the initial concerns are confirmed or not. The opening of in-depth inquiries does not prejudge the final result of the investigations. The Commission now has 90 working days, i.e. until 10 October, to reach final decisions on whether the transactions would significantly impede effective competition to an extent that would be detrimental to customers and consumers in the European Economic Area (EEA).


Previous
Next
Intel Unveils "Ultrabook" Laptops With Tablet Features at Computex        All News        LG Introduces Its First All-In-One 3D PC FPR Display And IPS Screen Technology
Samsung Mobile Display Completes New AMOLED Plant     General Computing News      Samsung Expands Presence in LCD Market in China

Get RSS feed Easy Print E-Mail this Message

Related News
Toshiba Releases New Surveillance, Video Streaming Laptop and Desktop Hard Drives
Seagate Says Its MACH.2 Multi Actuator Technology Breaks Throughput Record, Announces HAMR Reliability Tests
Seagate Demonstrates New Helium-based, 14TB Exos X14 Hard Drive at OCP Summit 2018
Seagate Releases Far Cry 5 Special Edition HDD for PS4
Save Your Pirate Stories on the New Seagate "Sea of Thieves" Game Drive for Xbox
Western Digital Expands Mid-Range Enterprise Air-based Hard Drives Offerings
Toshiba Reveals Fresh Canvio Portable Hard Drive Models
Western Digital Unveils New Solutions to Help People Preserve, Access and Share Their Photos and Videos
Seagate Showcases New Mobile Data Storage Solutions at CES 2018
Showa Denko Starts Shipment of 3.5-Inch 1.5 TB HD Media
Seagate Says Multi Actuator Technology Can Double Performance of Hard Drives
Toshiba and Western Digital Reach Settlement, Agree to Strengthen Flash Memory Collaboration

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2018 - All rights reserved -
Privacy policy - Contact Us .