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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.
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