The European Commission said Wednesday it approved Western Digital Corp.'s (WDC) proposed acquisition of Hitachi Global Storage Technology, a subsidiary of Hitachi of Singapore recently renamed Viviti Technologies.

The approval is conditional upon the divestment of essential production assets for 3.5-inch hard disk drives, including a production plant, and accompanying measures. Western Digital cannot complete the acquisition of Viviti 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 EU Competition Commissioner Joaquin Almunia.

-By Frances Robinson, Dow Jones Newswires; +32 2 741 1486; frances.robinson@dowjones.com