Japanese Regulators Grant Permission to WD for Purchase of Hitachi Hard Disk Division

Japanese regulators have cleared Western Digital's acquisition bid for Hitachi's hard disk business.

According to an article on Business Week, Japan's Fair Trade commission gave the company the go ahead for the acquisition after US based Western Digital agreed to some conditions. The company had gotten clearance from European Union regulators last month.

Regulators said Western Digital had agreed to sell of 10 percent of its existing 3.5-inch hard disk drive business unit, which offers HDDs for personal computers and laptops.

Western Digital will acquire Hitachi's HDD business for $4.3 billion and expects the acquisition to be completed by March of next year.

Meanwhile, Shang Ming, the head of China's Ministry of Commerce's anti-monopoly watchdog has claimed the acquisition could still hurt the market and Western Digital would need to convince them otherwise before the acquisition gets their approval.

"China is the world's biggest computer consumer and so naturally the deal will exert a negative impact on Chinese consumers," said Ming during a meeting.

Post the completion of the acquisition, Western Digital will be able to compete against Seagate, which dominates the global HDD market.