Seagate Technology plc. Has announced its decision that their core business, storage solution and Samsung’s hard disk business will be integrated into a single business front. Seagate had acquired Samsung HDD business in the December 2011. But this efforts were interrupted by China’s Ministry of Commerce (MOFCOM) citing unfair business practice as reason.
But now there clearance for the integration process has arrived from the ministry and Samsung HDD will now official integrate into Seagate storage division. With the following development, share prices of Seagate are soaring as much as 5%. Seagate brought Samsung HDD business in a takeover bid that was worth $1.4 billion in cash as well as stocks.
“Today’s decision marks an important step forward for Seagate, as we continue to evolve our strategy to meet the dynamic demands of the storage industry,” said Steve Luczo, chairman and chief executive officer of Seagate. “We were pleased by the constructive dialogue we had with MOFCOM throughout this process, which reflects in part our strong long-term presence, significant ongoing investment, and deep relationships in China, and we look forward to finalizing the integration of Samsung’s HDD business.”
The only restriction is that Seagate should allow consumers to buy products from other sellers and not compel them to buy its own products.