European Regulators OK Seagate-Maxtor Deal
European regulators have approved
Seagate's
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acquisition of rival hard-drive producer
Maxtor
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(MXO)
, removing the last legal obstacle to the $1.9 billion deal.
The news gave a solid boost to both companies; in recent trading on Thursday shares of Seagate were up $1.03, or 4.1%, to $25.91 while shares of Maxtor were gaining 44 cents, or 4.5%, to $9.53.
"The Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area or any significant part of it," the European Commission said in a press release.
U.S. officials have already OK'd the deal, which could close as early as May.
The acquisition will solidify Seagate's leading position in the market, giving it a share of roughly 40%, about 10% more than the company now commands. And by removing a major player, the deal is likely to ease pricing pressures that periodically decimate industry profits.
