Hard Drives

Samsung Electronics announced Tuesday the sale of its hard drives division to Seagate for 1.375 billion U.S. dollars (963 million euros) in cash and stock.

This sale will allow Samsung, which holds 10.7% market share worldwide in hard drives, to raise funds to finance investment in their growth activities. Samsung will receive 9.6% stake in Seagate and 687.5 million dollars in cash.

In March, Western Digital had bought the Japanese division of Hitachi hard drives for $ 4.3 billion, giving it a global market share approaching 50%. Seagate controlled 32% of the global market drives and with this acquisition, it will bring it to about 40% market share.