Western Digital in £2.7bn bid for Hitachi Global Storage

Western Digital is to acquire Hitachi Global Storage Technologies in a cash and shares deal worth $4.3 billion (£2.65 billion).

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Western Digital is to acquire Hitachi Global Storage Technologies in a cash and shares deal worth $4.3 billion (£2.65 billion).

The deal, for $3.5 billion in cash and 25 million Western Digital shares valued at $750 million, is the latest mega-merger to grip the IT industry.

The takeover is subject to regulatory approval and is expected to complete in the third quarter of 2011.

John Coyne, president and chief executive officer of Western Digital said, "We believe this step will result in several key benefits—enhanced R&D capabilities, innovation and expansion of a rich product portfolio, comprehensive market coverage and scale that will enhance our cost structure and ability to compete in a dynamic marketplace."

"This brings together two industry leaders with consistent track records of strong execution and industry outperformance," said Steve Milligan, president and chief executive officer, Hitachi Global Storage Technologies.

"Together we can provide customers worldwide with the industry's most compelling and diverse set of products and services, from innovative personal storage to solid state drives for the enterprise."

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