Toshiba to buy hard-drive gear from Western Digital

Bloomberg

Toshiba Corp. said Wednesday it will acquire hard-disk drive manufacturing equipment from Western Digital Corp. to expand its business supplying components for servers and digital video recorders.

Toshiba will trade its wholly owned Thai hard-disk manufacturing unit for the equipment to make 3.5-inch drives and related intellectual property, the Tokyo-based company said in a statement.

It intends to double sales of memory devices including hard drives to ¥800 billion in the year ending in March 2015 from about ¥400 billion this business year, spokesman Toru Ohara said.

Western Digital, based in Irvine, California, is divesting the equipment to address regulators’ concern about its planned acquisition of Hitachi Global Storage Technologies, the company said in a statement published on PR Newswire.

The transaction doesn’t involve any cash payment, Ohara said.