EU probe into Samsung and Hitachi deals

HarddiskAnti-trust regulators of European Union have launched an in depth probe into the two takeover bids in the computer hardware sector. The first one is Seagate technologies bid for acquiring Samsungs hard disk drive unit and the second deal under the scanner is Western digital’s bid for acquiring Hitachi’s hard drive unit. The main concern according to EU to put these deals under the scanner is the reduction of rivals in the industry. These acquisitions would reduce the number of large manufacturers in the sector to three from five. These deals if they get through would make Western digital the largest market player with 50% market share, while Seagate would be having 40% market share. After the deals the only other player existing in the market other than these two would be Toshiba with 10% of the market share. A decision whether to clear or block these deals will be made by the regulator before October 10th.

Report by Reuben