China: OK, Seagate, you may now kiss your bride (Samsung's disk biz)
MOFCOM gives the nod
The Chinese Ministry of Commerce (MOFCOM) has said Seagate can finally start integrating Samsung's disk drive business into its mainstream operations.
Seagate bought this business from Samsung almost four years ago, in December 2011. This decision by MOFCOM to lift the "Hold Separate" restriction parallels its similar one to let Western Digital integrate its acquired HGST business.
Seagate CEO and chairman Steve Luczo managed the not inconsiderable feat of almost congratulating MOFCOM in a canned quote; "We were pleased by the constructive dialogue we had with MOFCOM throughout this process, which reflects in part our strong long-term presence, significant ongoing investment, and deep relationships in China, and we look forward to finalizing the integration of Samsung's HDD business."
He couldn't say anything else really, although we might imagine privately he was seething. MOFCOM has imposed some tail-end requirements; Seagate must allow customers to buy products from other vendors, and not compel TDK China Ltd to sell HDD heads exclusively to Seagate. As if it would. ®