Western Digital Gets FTC Approval for Hitachi GST Purchase, Under Conditions

Written by John Ponio    Wednesday, 07 March 2012 14:22

Western Digital Logo

A year ago (exactly, actually), Western Digital announced its plans to purchase Hitachi Global Storage Technologies, which is Hitachi's hard drive department. The transaction was estimated to be over by the third quarter of last year, but they ran in to some troubles with the Federal Trade Commission. This explains why Hitachi GST released a new enterprise line of SSDs a month ago instead of Western Digital. The problem, fairly obviously, was that if WD owned Hitachi GST, Western Digital would have 49% of the hard drive market, while competitor Seagate would only have 29%. To off-set this, the FTC set conditions that Western Digital had to sell the manufacturing capacities of Hitachi GST to a competitor. Toshiba stepped up to buy, and they'll be purchasing the assets.