European Commission orders Western Digital to sell a 3.5-inch HDD plant

While the European Commission approved the proposed purchase of Hitachi Global Storage Technology (HGST) by rival Western Digital, the approval depends on the sale of essential production assets for 3.5″ hard disk drives, including a production plant, and accompanying measures.

In other words Western Digital cannot complete the HGST deal until it has found a suitable purchaser that is approved by the commission.

“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 Joaquín Almunia.

WesternDigitalLogo

The Commission ruling comes after an examination that showed there are separate worldwide markets for HDDs based on their form factor (3.5″ or 2.5″) and end use (such as desktop computers, mobile computers, consumer electronics devices and enterprise business critical and mission critical applications).

On the 3.5-inch hard drive market the new merged company will face competition only by the recently merged Seagate/Samsung.

To gain regulatory clearance, Western Digital proposed to divest essential production assets for the manufacture of 3.5″ 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.

Source: XbitLabs

Related posts

ASUS intros new ROG gaming notebook, new headset

ASUS intros new ROG gaming notebook, new headset

ASUS has just added two new products to its Republic of Gamers (ROG) line – a new gaming notebook and a new headset. The notebook is called ROG Strix GL502, while the headset carries just the ROG Strix product name. The ROG Strix GL502 gaming notebook comes with a compact 15.6-inch IPS...

Logitech V550 Nano Clip-and-Go Mouse

Logitech has unveiled new mouse named V550 Nano Clip-and-Go Mouse featuring 2.4GHz USB nano receiver, 2x AA batteries that will be good for next 18 months and special “Clip-and-Go Dock” which affixes to your laptop. It measures 3.91 x 2.28 x 1.34-inch and features Logitech’s superb hyperfast...

Zopo prepares three new smartphones

Zopo prepares three new smartphones

The Chinese smartphone maker Zopo will soon continue the trend of having more and more budget smartphones on the market. This company now works on three new cheap handsets that are known as F2, F5 and C3. Their nature cannot be hidden – they are all based on the MediaTek MT6737 quad-core...

Leave a comment