Western Digital completed Thursday the acquisition of the hard drive business of Hitachi, and set up two subsidiaries with separate brands and products, apparently to meet the conditions of antitrust regulators. 2012 tech industry’s M&AsThe company said in a statement late Thursday that it completed the acquisition of Viviti Technologies, formerly Hitachi Global Storage Technologies, effective March 8 for US$3.9 billion in cash and 25 million shares of its common stock valued at about $0.9 billion.Hitachi now owns 10 percent of Western Digital’s shares outstanding. Western Digital has paid about $392 million more in cash as part of an amendment to the purchase agreement.Western Digital will operate with WD Technologies and HGST as wholly-owned subsidiaries, with total revenue in 2011 of $15 billion.”Similar to successful multi-brand models in other industries, the two subsidiaries will compete in the marketplace with separate brands and product lines while sharing common values of customer delight, value creation, consistent profitability and growth,” Western Digital said.Western Digital announced the proposed acquisition in March last year. But its completion was delayed largely because of the need for regulatory clearances, amid concerns that the acquisition could reduce competition in the hard drive market in the wake of plans… Read full this story
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