It's become apparent that Western Digital are looking to broaden their wings further and are currently in discussion with Fujitsu over the possible acquisition of their hard drive business, which would in turn give them a substantial boost in the mobile HDD market.
According to Japanese news-paper Nikkei, which is quoted by IDG News Service, Western Digital plans to acquire Fujitsu's HDD business unit along with plants in Japan, the Philippines and Thailand for ¥70 billion to ¥100 billion (US$661 million to US$944 million). At present the companies are still in talks, but if everything goes well, the agreement is expected to be reached by the end of 2008.
Western Digital commanded 22.5% of the HDD market in 2007, according to IDC, whereas market share of Fujitsu was 7.1%. Even though the combined company (with 29.6% of the market) would not be able to beat Seagate Technologies, which supplied about 35% last year, but Fujitsu has a lot of experience in making hard drives for mobile computers, which would automatically make WD much stronger overall.
You can read the full story at XBit Labs. Of course, both Western Digital and Fujitsu are yet to confirm its authenticity or likeliness of a deal being made.
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