Hoya, Showa Denko to merge hard disk media business

TOKYO, Sept 30 (Reuters) - Japan's Hoya Corp (7741.T) and Showa Denko (4004.T) said on Tuesday they will merge their hard disk media businesses and will set up a joint venture around January next year.

Showa Denko will own 75 percent of the new company, and Hoya will own the rest.

Hoya said earnings contributions from its hard disk media operations will be smaller than previously expected from the January-March quarter because the new company will be an equity-method company.

The deal will not affect Show Denko's 2008 earnings outlook. (Reporting by Sachi Izumi)