The Channel logo

News

By | Chris Mellor 17th November 2011 10:22

EU puts Hitachi GST on the menu for hungry WD

Takeover will create world's biggest disk drive maker

The European Union is set to give Western Digital its blessing to buy Hitachi GST and become the world's biggest hard disk drive manufacturer by far, or so says Reuters.

But Western Digital has to become smaller to get bigger; the EU requires it to sell off some operations, including sizeable ones, according to Reuters. Conditional approval should come next week.

The divestments could, we stress could, involve parts of WD's desktop 3.5-inch drive business. Until WD says what's involved we simply don't know. We do know though that the company has decided to buy in some disk heads from TDK, lessening its reliance on its in-house capabilities.

If WD has to divest significant portions of its business then Seagate or Toshiba would appear to be the main potential buyers and, as it would be a forced sale, top dollars would not be forthcoming.

WD aims to buy Hitachi GST for $4.3 billion. Seagate intends to buy Samsung's disk drive operation and the EU approved that deal with no conditions. ®

alert Send corrections

Opinion

Ship scrapyard photo via Shutterstock
Windows 10 Universal Apps
Windows 10 on Surface 3

Tim Anderson

It's do-or-die for Microsoft's new operating system on 29 July

Features

Steve Ballmer. Pic:  Aanjhan Ranganathan
Nokia is the biggest write-off yet, but it wasn't the first
Confused computer keyboard
Last Christmas, I gave you my Cloud, the very next day you gave it away
Time to pull out the magnifying glass to swot up on those Ts&Cs
Android icon desktop toys
Nice devices, now speak 'enterprise' to me