Toshiba announced plans to acquire Fujitsu's hard drive business. The aquisition would make Toshiba the fourth largest global HDD manufacturer, behind Hitachi, Western Digital, and Seagate. Toshiba would still have to increase worldwide sales after the merger by at least 3% to topple Hitachi as the third largets HDD manufacturer.
Toshiba said it plans to purchase about 80% of Fujitsu's storage division in the first part of its 2009 fiscal year and that Fujitsu will continue to hold less than a 20% stake for "a certain period of time."
This should give Toshiba a huge leg up in the 2.5" and 1.8" hdd markets, both with conventional hard drives and SSD's. The purchase price has not been disclosed but it has been estimated the purchase will set Toshiba back at lease $1 billion.
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