Hitachi Ltd. this week completed its purchase of the majority of IBM Corp.’s hard disk drive manufacturing business for US$2.05 billion, IBM said in a statement.
Hitachi paid 70 per cent of the purchase price Tuesday, with the remaining 30 per cent to be paid to IBM over a three-year period, IBM said. Under the agreement, Hitachi will form a new company called Hitachi Global Storage Technologies, based in San Jose.
IBM, in Armonk, N.Y., and Tokyo-based Hitachi announced in April their intention to create the new company from the two companies’ hard disk drive divisions. IBM said at the time it wanted to focus on other areas of the storage market.
Both the U.S. Federal Trade Commission and the European Commission had to sign off on the deal before it could be completed. [Please see FTC approves IBM HDD sale to Hitachi.]