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Fujitsu says it is not negotiating the sale of HDD production

The Japanese company Fujitsu has denied information that it is allegedly going to sell its business for the development and production of hard drives to Western Digital.

The message from a company spokesman came on Thursday, following a wave of publications citing a Japanese source discussing a possible deal. According to some of the publications, an agreement between Fujitsu and Western Digital is close to being signed. Denying this information, Fujitsu said it was not in talks with Western Digital to sell.

So, some say that the issue with the sale has been resolved, they even call the amount of the transaction – almost a billion dollars; others deny even the very fact of negotiations. Who to believe? It is known that such situations often accompany large transactions that can change the distribution of forces in the market. There is no doubt that in this case we are dealing with just such a transaction. Fujitsu currently has to compete with larger manufacturers such as Seagate Technology, Western Digital and Hitachi. By acquiring Fujitsu, Western Digital could increase its headroom, especially in the face of the constant price pressures that characterize the current state of the market. In addition, given Fujitsu’s specialization, Western Digital could expect to strengthen its position in the mobile HDD segment.

Source: Reuters

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