IDG News Service - Hitachi Ltd. on Dec. 31 completed its purchase of the majority of IBM's hard disk drive manufacturing business for $2.05 billion, IBM said in a statement.
Hitachi paid 70% of the purchase price, with the remaining 30% to be paid to IBM over a three-year period, IBM said. Under the agreement, Hitachi will form a new company called Hitachi Global Storage Technologies, based in San Jose.
IBM and Tokyo-based Hitachi announced in April their intention to create the new company from their hard disk drive divisions (see story). IBM said at the time it wanted to focus on other areas of the storage market.
Both the Federal Trade Commission and the European Commission had to sign off on the deal before it could be completed.
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