Europe Reviews Seagate's Takeover Bids for Samsung Disk-Drive

By Park Sae-jin Posted : May 31, 2011, 13:16 Updated : May 31, 2011, 13:16
European Union regulators opened in-depth investigations into takeover bids for two Asian companies by two American peers in the computer hardware sector, New York Times reported.

Seagate Technology has said it buys the hard-disk drive unit of Samsung Electronics for $1.4 billion, a deal that would give Seagate access to Samsung’s NAND-type flash chips for its solid-state drive products.

According to the Times report, Western Digital plans to buy Hitachi’s hard-disk drive business for $4.3 billion to give it an edge in developing next-generation storage technology.

The Western Digital and Hitachi transaction would result in only one company competing in desktop hard-disk drives and just two rivals in mobile hard-disk drives, the commission said. The commission will decide by Oct. 10 whether to clear or block the deals, the Times said.

The European competition commissioner, Joaquín Almunia, said the Samsung deal would consolidate Seagate’s position in the hard-disk drive market, leaving only two rivals, Western Digital and Hitachi, quoted by the times report.

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