FTC OKs IBM-Hitachi Hard Drive Deal
The Federal Trade Commission has approved IBM Corp.’s $2.05-billion sale of most of its hard-disk drive assets to Japan’s Hitachi Ltd., the companies said.
The deal still needs approval from Mexican regulators, an IBM spokesman said, adding that IBM expects the deal to close by the end of the year.
The companies plan to combine their hard drive assets into a joint venture in which Hitachi initially will have a 70% stake.
Hitachi plans to take full ownership of the venture after three years.
Hard disk drives, similar to other components for computers, have been hurt by slack demand and sharply reduced pricing in the last year.
Hitachi and IBM previously received antitrust approval from regulators of the European Commission, Japan, Brazil and Taiwan, the companies said.
IBM stock rose 38 cents to $87.30 on the New York Stock Exchange.
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