Monday, October 19, 2015

Western Digital Gets Nod To Integrate HGST, Other China Subsidiaries

Irvine-based Western Digital said today that it has received a nod from China's Ministry of Commerce (MOFCOM), which will finally allow it to integrate "substantial" portions of its HGST and WD subsidiaries. Western Digital had acquired HGST back in March of 2012, but as a condition of approving the acquisition, China had essentially handcuffed the company's involvement in day to day operations in HGST. Western Digital said the new agreement with MOFCOM comes after "ongoing dialogue" with the agency over its "hold separate" restrictions, and agreeing to offer both HGST and WD products in the market, and also maintain separate sales teams for two years after the date of the decision. Western Digital said it will immediately begin integration of corporate and other key functions, R&D, operations, engineering and manufacturing, and more. HGST makes heads for the disk drive industry, used for picking up the information on spinning hard disk platters.

---