Western Digital Cleared To Unify HGST and WD Operations
Western Digital Corp. have received approval from China?s Ministry of Commerce (MOFCOM) to integrate substantial portions of their HGST and WD subsidiaries under Western Digital Corporation.
This includes corporate functions, research and development, heads and media operations, engineering, and manufacturing.
The agency's decision is the result of an ongoing dialogue regarding the "hold separate" restriction associated with Western Digital's acquisition of HGST in March 2012. As part of the agreement with MOFCOM, Western Digital will continue to offer both HGST and WD product brands in the market and maintain separate sales teams for two years from the date of the decision.
"The decision announced today positions us for continued growth and long-term value creation," said Steve Milligan, chief executive officer of Western Digital. "HGST and WD are an exceptional combination, and together, we will set the pace for innovation in this dynamic and evolving industry."
Integration activities will begin immediately and are expected to continue over the next 24 months. Western Digital expects the integration of corporate and other key functions, including research and development, heads and media operations, engineering and manufacturing, will result in significant opportunities for growth, synergies and cost savings consistent with the levels previously outlined by the company.
The agency's decision is the result of an ongoing dialogue regarding the "hold separate" restriction associated with Western Digital's acquisition of HGST in March 2012. As part of the agreement with MOFCOM, Western Digital will continue to offer both HGST and WD product brands in the market and maintain separate sales teams for two years from the date of the decision.
"The decision announced today positions us for continued growth and long-term value creation," said Steve Milligan, chief executive officer of Western Digital. "HGST and WD are an exceptional combination, and together, we will set the pace for innovation in this dynamic and evolving industry."
Integration activities will begin immediately and are expected to continue over the next 24 months. Western Digital expects the integration of corporate and other key functions, including research and development, heads and media operations, engineering and manufacturing, will result in significant opportunities for growth, synergies and cost savings consistent with the levels previously outlined by the company.
