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Mergers and Acquistions News

Categories: Hardware

January 16th 2009, 10:45AM

Toshiba and Fujitsu are in talks about a possible merging of their hard-disk drive businesses.

According to reports the two firms are hoping such a move would reduce both of their costs.

Bloomberg quotes people close to the deal as saying that Toshiba would have a majority stake in any joint venture, while Fujitsu is said to be in discussions with a number of companies about its disk drive business.

"The deal would be positive for both companies in that Fujitsu can jettison the money-losing unit and Toshiba can expand a potentially profitable business," Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co, tells the news provider.

A spokesperson for Toshiba confirmed that the company is in talks with Fujitsu but added that nothing has been decided.

Share in the firms have climbed by more than five per cent since the news emerged.

Earlier this week, it was reported that South Korean telecoms firm KT Corp is set to seek approval for a merger with its mobile services unit KTF.
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