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Toshiba and Fujitsu May Combine Hard-Disk Drive Units

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Toshiba Corp., Japan's biggest chipmaker, may buy the majority of Fujitsu's hard-disk drive business, according to information leaked over the net. A possible deal between the two companies will be possitive for them both. Fujitsu will sell its money-losing subdivision, while Toshiba will strengthen its position in the hard drive business and probably lower production costs of its storage goods. Unfortunately, when such a deal is ongoing and not yet finalized, there's not much information to share. Fujitsu's spokesman Etsuro Yamada said that his company is currently in discussions with several other companies about its hard-disk drive business, but did not say anything specific about Toshiba. On the other side Keisuke Ohmori, a spokesman at Toshiba in Tokyo, said: "It’s true that we are in talks with Fujitsu on the matter, but nothing has been decided at the moment,"
An agreement may be reached by the end of this month, according to Bloomberg.com.

Source: Bloomberg