move by Seagate and Western Digital to acquire hard - effort companies are being probed by European regulators because of “ rivalry business organisation ” , the European Commission say on Monday .
The aim acquisitions will “ further reduce contention ” , the EC said in a statement cite business concern about a pregnant consolidation in the arduous - drive marketplace .
“ Hard drive are the keystone of the digital thriftiness , ” Joaquin Almunia , vice president of competition policy at the European Commission , order in the statement . “ The Commission will cautiously examine if effective competition is preserved and foundation further . ”
Western Digital say in March it would acquire Hitachi ’s hard drive business for $ 4.3 billion . Competitor Seagate said a calendar month later it would acquire Samsung ’s laborious cause business for $ 1.38 billion .
Seagate and Western Digital are currently the top two hard - driving vendors in the market , according to market research firm IHS iSuppli .
Western Digital ’s acquirement of Hitachi ’s hard - drive business could make it the orotund strong - drive vendor with about 50 percent of the worldwide mart , according to iSuppli . Seagate ’s acquisition of Samsung ’s hard - drive surgical procedure could give the combine party a 40 percent food market share , said Fang Zhang , an iSuppli analyst , in a web log entry in other May .
The remaining market share would belong to Toshiba , which in 2009 acquire Fujitsu ’s operose campaign commercial enterprise .
The Commission has until Oct. 10 to influence whether the transactions obstruct competition and are detrimental to business client and consumers . The investigation of the proposed transactions will let in a look at whether the batch could involve pricing and supply of hard drives . The merger treat with be assess separately , the EC said .
Western Digital is proceeding with plans to make out the learning of Hitachi ’s hard drive business organization , the company say in a statement . The acquisition is now have a bun in the oven to fold in the 4th quarter of this twelvemonth , a postponement from the planned closure in the third quarter that the company announced in March . Seagate did not immediately respond to a request for comment .
The hard - drive grocery store is slacken down as sales of twinkling storage and hearty - state drive originate . punishing - drive sales totaled $ 27 billion in 2010 , and are wait to grow by 4.1 percent to $ 28 billion this yr , according to iSuppli . Hard drive sales event will grow , albeit at a slower pace , through 2015 , it said .
