Toshiba has finally received approval from various antitrust authorities for their plans to buy Fujitsu’s hard drive division. The agreement between Toshiba and Fujitsu was announced in February, and according to both parties, transfer of 80.1% of the shares of the relevant business unit will be completed by October 1st.
This represents a delay of several months; earlier this year, the companies announced that they “[...] plan to conclude a transfer contract at an early date, and aim to complete the transaction in the first quarter of fiscal 2009“. The deal is meant to facilitate Toshiba’s entry into the SSD market; Fujitsu retains their HDD head and media business.
Entry into the enterprise business will allow Toshiba to further enlarge its market-leading solid state drive (SSD) business by developing SSD products for servers and enterprise storage systems, fusing Toshiba’s NAND flash memory technology with Fujitsu’s enterprise HDD technology. This move is expected to spur expansion of the rapidly expanding SSD market.
By taking advantage of the integration of Fujitsu’s HDD businesses, Toshiba also aims to strengthen collaboration with HDD parts suppliers and to promote cost reductions and the development of new technologies.
Going forward, Toshiba aims to build on the consolidation to raise its share in the overall HDD market to over 20 percent by 2015.
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