The Commission decided that the transaction did not “raise serious doubts as to its compatibility with the common market” and reasoned that, because hard-disk products are highly standardised and supply contracts are non-exclusive and short-term, the change-over costs for customers would be low.
The Commission also found that the acquisition will not violate European anti-trust rules, as the entry barriers into the mobile market for incumbent hard-disk drive manufacturers are relatively low.
Under a joint venture arrangement, Hitachi will initially acquire a 70% stake in the IBM hard-disk drive division, which it aims to fully own in three years. The new company will be based in San Jose, California, and will employ approximately 24,000 staff at 11 locations worldwide.