Toshiba to buy Fujitsu’s hard drive unit
1 min read
Toshiba has revealed that it will buy Fujitsu’s struggling hard disk drive (hdd) unit in a bid to gain market share over the storage segment’s prices.
Toshiba itself is suffering increasing losses on its chip business and has yet to agree on a price for Fujitsu’s hdd operations.
The deal will see Fujitsu’s hdd related businesses and functions together in a new company. Toshiba will then acquire approximately 80% of the company which will then become a subsidiary under the Toshiba Group banner. Once the deal has been closed – most likely after April 2009 – it would free Fujitsu from a string of losses on its hard drives.
Fujitsu’s hard drive operations are expected to make an operating loss of 25billion Yen in the year to March. As a result of the Toshiba deal, Fujitsu will incur a one time loss of 30bn Yen. Fujitsu now expects a group net loss of 50bn Yen in the year to March – wider than previous estimates of 20bn Yen.
