© evertiq Business | February 05, 2016

SanDisk/Western Digital deal gets a green light from EU

The European Commission has approved the proposed acquisition of data storage manufacturer SanDisk by rival Western Digital, both of the US, after concluding the takeover would not adversely affect competition in Europe.
Commissioner Margrethe Vestager, in charge of competition policy, stated: “I am pleased that we have been able to ensure that this multi-billion dollar deal in a fast-developing industry can go ahead without delay. We have worked efficiently, in cooperation with our US counterparts, to scrutinise this takeover in the strategically important IT sector and concluded that there would be no adverse effects on either retail or commercial customers.”

Both of the companies provide computer storage solutions – hard disk drives or solid state drives based on flash memory – for the consumer electronics and enterprise markets. However, the Commission found that the overlap between the activities of the companies is effectively limited to the market for enterprise space for flash memory storage solutions, including enterprise solid-state drives.

The Commission therefore assessed the effects of the transaction on competition in this area. The Commission found that, despite the merged entity's relatively high combined market share, the transaction does not raise competition concerns.
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