Toshiba near deal to buy Fujitsu HDD ops -- Nikkei

Tue Jan 13, 2009 1:14pm EST
 
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NEW YORK, Jan 13 (Reuters) - Toshiba Corp (6502.T) is in the final stages of talks to buy the hard-disk drive business of Fujitsu Ltd (6702.T) for 30 billion to 40 billion yen ($335 million to $447 million), the Nikkei financial daily reported.

The deal, which would create the world's largest maker of small hard drives, would be announced at the end of the month if the heads of the two companies agree at a meeting to be held within the week, the Nikkei said without citing sources.

Toshiba wants to buy Fujitsu's hard-drive manufacturing and sales networks, including Fujitsu's two hard-drive plants, one each in Thailand and the Philippines, the Nikkei said.

The deal is not expected to include a plant in Nagano Prefecture, north of Tokyo, where Fujitsu makes hard-drive parts, or the hard-drive production segment of Fujitsu unit Yamagata Fujitsu, it said.

Fujitsu is considering selling its remaining hard-drive segments to other firms with an eye on withdrawing from the business altogether, the Nikkei said. ($=89.54 yen) (Reporting by Ted Kerr; Editing by Andre Grenon)

 

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