Friday, January 30, 2015
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
HDDs Shipments Increased In 2014
FCC To Fine AT&T For Unathorized Operation Of Wireless Stations
Google Reports Increased Profit
Facebook Introduces Place Tips in News Feed
AMD Cuts Prices Of Radeon Graphics Card To Cash On GTX 970 Memory Furor
HyperX Sets DDR4 Overclocking Record
Intel 5th Generation vPro Processors Released
Mobile Provider TracFone to Pay $40 Million to Settle FTC Charges
Active Discussions
Writing Audio files on DVDs ?
Need major help with Gigabeat
New match-3 puzzle game launch now!
Rimage 2000i
Sound card for my Laptop
hello
full screen wide screen
Hi
 Home > News > PC Parts > Europe ...
Last 7 Days News : SU MO TU WE TH FR SA All News

Wednesday, November 23, 2011
Europe Clears Western Digital's Acquisition of Hitachi's Hard Disk Drive Business, Subject To Conditions


Western Digital has secured conditional approval from the European Union's competition regulator to purchase Hitachi's hard disk drive business for $4.3 billion, after it agreed to sell several production operations.

The European Commission (EC) has approved under the EU Merger Regulation the proposed acquisition of Hitachi Global Storage Technology (HGST), a subsidiary of Hitachi of Singapore recently renamed Viviti Technologies, by rival Western Digital. The approval is conditional upon the divestment of essential production assets for 3.5-inch hard disk drives (HDD), including a production plant, and accompanying measures. Western Digital cannot complete the acquisition of Viviti until it has found a suitable purchaser that is approved by the Comission.

"Hard disk drives are a key component of computers and other sophisticated electronic devices as they are used to store a growing bulk of data in the digital economy. The proposed divestiture will ensure that competition in the industry is fully restored before the merger is implemented," said Commission Vice-President in charge of competition policy Joaquin Almunia.

The Commission's examination showed that there are separate worldwide markets for HDDs based on their form factor (3.5-inch or 2.5-inch) and end use (such as desktop computers, mobile computers, consumer electronics devices and enterprise business critical and mission critical applications). The Commission also identified a separate market for external HDDs (or XHDDs), which is downstream from HDDs, in the European Economic Area (EEA) 1.

On the markets for 3.5-inch Desktop HDDs and Consumer Electronics HDDs, the merged entity would only face competition from the recently merged Seagate/Samsung. This is a problem because for security of supply reasons, most customers on these markets multi-source HDD purchases. Toshiba only recently entered the market for 3.5-inch Business Critical HDDs and it is uncertain whether it could replace the competitive constraint presently exerted by Viviti.

To gain regulatory clearance, Western Digital proposed to divest essential production assets for the manufacture of 3.5-inch HDDs, including a production plant, the transfer or licensing of the IP rights used by the divestment business, the transfer of personnel and the supply of HDD components to the divestment business. WD committed not to close its proposed acquisition of HGST before concluding a binding agreement for the sale of the divestment business to a suitable purchaser approved by the Commission.

As a result, the Commission concluded that the proposed merger, as modified by the commitments, will not significantly impede effective competition in the EEA.


Previous
Next
Nokia Siemens Networks Initiates Restructuring        All News        FCC Opposes AT&T's Purchase of T-Mobile
Has AMD Canceled Globalfoundries 28-nm APUs?     PC Parts News      Nvidia Video Shows Ice Cream Sandwich OS

Get RSS feed Easy Print E-Mail this Message

Related News
HDDs Shipments Increased In 2014
HGST Hard Disks Top Reliability Tests
Hitachi Wearable Device Monitors Brain Functions
Hitachi Technology Stores Digital Data In 100 Recording Layers, Data Can be Stored For 300 million Years
ASTC Says 100 TB HDDs Coming in 2025
Toshiba Offers New 4TB and 5TB Desktop HDDs
New WD My Passport Portable Storage Drive Has Wireless Function And SD Card Slot
Western Digital Introduces 6 TB NAS Hard Drive, Seagate Starts Sampling 8GB Models
HDD Market Seen To Post Modest Growth in 2014
HGST Debuts Touro S Mobile External Hard Drives, 15K RPM Enterprise-class Ultrastar C15K600 family
Hitachi HDDs Have The Lowest Failure Rate: report
Hitachi Combines SSD Tier And SSD Cache Methods in Tiered Storage Systems

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2015 - All rights reserved -
Privacy policy - Contact Us .