Toshiba is to acquire most of rival Fujitsu's hard disk drive
(HDD) business for an undisclosed sum as part of consolidation
plans by both companies.
Electronics manufacturers are restructuring in the face of
decreased demand in the economic downturn, and Toshiba hopes
the deal will help it to grow its share of the HDD market.
Fujitsu is to group all its HDD-related businesses in new
company. Toshiba will acquire an 80% stake in this company and make
it a Toshiba Group subsidiary.
Under the agreement, Fujitsu will transfer to Toshiba its HDD
design, development, manufacturing, and sales, with the exception
of Fujitsu's HDD head and media businesses. Fujitsu will continue
to hold a stake of under 20 percent in the new company for a
certain period of time, after which it will become a wholly owned
subsidiary of Toshiba.
Toshiba said the consolidation of the two HDD businesses will
help the company reinforce its position as a supplier of small HDDs
for notebook PCs, mobile devices and automotive electronics.
Toshiba also hopes the deals will clear the way for it to enter
the enterprise HDD market for server and data storage system
applications, where Fujitsu is a leader.