Brussels objects to WD's Hitachi GST purchase
Issues beefs, awaits corporate response
The European Union is objecting to Western Digital's proposed purchase of Hitachi GST on antitrust grounds.
The European Commission has issued a formal Statement of Objections. A Western Digital SEC filing said:
The Statement of Objections sets out the European Commission's preliminary assessment regarding the combination of the Company and Viviti [Hitachi GST's holding company] and its potential effects on competition. A Statement of Objections is a preparatory document that does not prejudge the European Commission's final decision. The issuing of a Statement of Objections allows recipients to present arguments in response to the European Commission's preliminary assessment of the competitive effects of a notified transaction. Subject to obtaining the required regulatory approvals or expiration of applicable waiting periods in the European Union and other remaining jurisdictions, the Company expects the transaction to close during the fourth calendar quarter of this year.
Detail on the objections hasn't been released at this stage. Assuming WD can respond appropriately to the objections, the deal will go ahead.
Assuming it can't, it won't. ®