The deal will help Toshiba raise its share in the HDD market to over 20 % by 2015, the company claimed.
According to the memorandum, Fujitsu will facilitate the transfer by bringing its HDD-related businesses and functions together in a new company, which will later sell an 80 percent stake to Toshiba and will be turned into a Toshiba Group subsidiary.
Fujitsu will continue to hold a stake of under 20 percent in the new company for a certain period of time. Eventually, the company will end up being 100% under Toshiba’s control.
The agreement mentions that the main assets covered by the transfer are as follows:
– HDD manufacturing subsidiaries Fujitsu Computer Products Corporation of the Philippines (FCPP) and Fujitsu (Thailand) Co., Ltd. (FTC)
– HDD design, development, quality assurance and other departments of Yamagata Fujitsu Limited
– HDD technology development department of Fujitsu Laboratories Ltd
– HDD sales and marketing offices outside Japan
Fujitsu’s HDD head and media businesses will not be part of the transfer.