EU Opens Probes Into Two Hard Disk Drive Sector Acquisitions
May 30 2011 - 12:42PM
Dow Jones News
The European Commission on Monday said it has opened probes into
two acquisitions in the computer hard-disk sector.
The first is Seagate Technology Inc.'s (STX) plan to buy the
hard disk drive business of Samsung Electronics Co. (SSNHY,
005930.SE), and the second is the purchase of Hitachi Ltd.'s (HIT,
6501.TO) hard-disk business by Western Digital Corp (WDC).
"Hard drives are the backbone of the digital economy. The sector
has already experienced significant consolidation, and the proposed
acquisitions will further reduce competition," said E.U. antitrust
commissioner Joaquin Almunia in a statement. "The commission will
carefully examine if effective competition is preserved and
innovation encouraged."
The commission said the merged companies would have significant
share in the market for 3.5-inch hard drives, used in desktop
computers, and the market for 2.5-inch hard drives, used in mobile
devices.
-By Matthew Dalton, Dow Jones Newswires; +32 (0)2 741 1487;
matthew.dalton@dowjones.com
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