Western Digital Acquisition Of Hitachi HDD Business Gains Conditional Approval

The worlds second largest hard disk drive manufacturer, Western Digital, has been given conditional approval by the European Union for its purchase of Hitachi’s hard disk drive business. Western Digital has promised to sell off essential production assets, including a production plant related to the manufacture of 3.5-inch hard disc drives, in order to secure this approval. The company further agreed to license or transfer intellectual property rights related to the business that is to be sold off, this also included staff and supply of HDD components. The EU Commissioner Joaquim Almunia said “The proposed divestiture will ensure that competition in the industry is fully restored before the merger is implemented.” While the deal has been cleared with conditions, it will not meet final approval by regulators until Western Digital can find a buyer for the unit.