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The European Union is notorious for being sticklers when it comes to how companies do business and is ever watchful for what it perceives to be a potential monopoly. Concerns aside, the EU just granted approval to Western Digital, the world's second largest hard drive maker, to purchase Hitachi's HDD business for $4.3 billion, with Hitach being the third biggest player in the HDD market.
"The proposed divestiture will ensure that competition in the industry is fully restored before the merger is implemented," EU Commissioner Joaquin Almunia said in a statement, according to Reuters.
Certain conditions must be met before Western Digital is allowed to proceed. For example, the EU made Western Digital pinky swear to sell off several production assets related to 3.5-inch drive manufacturing. Among those assets is a production plant that must have a buyer before the deal can go through. Western Digital will also transfer or license intellectual property rights to the business to be sold off, as well as transfer staff and HDD components, Reuters reports.
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Slurpy
November 24, 2011 at 12:07am
And we thought Deskstars deserved to be called Deathstars BEFORE.
livebriand
November 23, 2011 at 3:03pm
Well, at least WD makes good drives. How long will it take for this to go through? Will it be in time to help WD's HDD prices?
Morete
November 23, 2011 at 9:17am
"The proposed divestiture will ensure that competition in the industry is fully restored before the merger is implemented,"
lol, Joaquin Almunia puts on a great comedy show.
Zoandar
November 23, 2011 at 8:53am
4 Sale: HD fabrication plant in idyllic coastal setting. Includes expansive water park. Ask about our ‘ sight unseen' deep discount. Offer ends soon so act today!
Conal_keaney
November 23, 2011 at 8:37am
I think you might have made a typo with the first sentence. I think you meant "ever" not "every".
