Western Digital Shares Jumped: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of hard disk drive maker Western Digital (NYS: WDC) are spinning faster today, as the stock has jumped by 10% after news that the company may win EU regulatory approval to acquire Hitachi's hard disk drive business.

So what: Western Digital will need to sell some of its operations to address competitive concerns, and the clearance will be conditional. The European Commission is now expected to approve the deal next week ahead of schedule.

Now what: EU regulators had previously started an in-depth investigation of the proposed $4.3 billion deal in May, alongside a separate deal between Seagate Technology (NYS: STX) and Samsung. There was concern that the deals could hinder competition as some of the players consolidated, but the Seagate and Samsung deal was cleared last month without a hitch. Western Digital is hoping that the agreement will give it an advantage in the next generation of storage technology.

Interested in more info on Western Digital? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of Western Digital. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners