EU approves Hitachi/LG joint venture

The European Commission has given its consent to a joint venture between Hitachi and LG Electronics, arguing that the project...

The European Commission has given its consent to a joint venture between Hitachi and LG Electronics, arguing that the project will face stiff competition

The two firms are pooling resources to develop optical data storage products, such as CD drives and DVD drives for computers. Both companies will transfer their storage activities to the joint venture and exit the storage market, the Commission said in a statement.

The companies told the Commission that production of optical disk drives will be outsourced either to the parent companies or to independent manufacturers.

"The Commission cleared the deal because of the limited market shares of the parents," said the Commission, adding that the venture will face competition mainly from Toshiba, Samsung, and Lite-ON Electronics.

"As a result, the creation of the joint venture will neither significantly reduce the competition in the market nor significantly reduce the choice for consumers," the Commission said.

Further information
European Commission: europa.eu.int

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