Toshiba in Talks for Fujitsu's HDD Business

Japan's Toshiba confirmed media reports it is talking with Fujitsu about buying Fujitsu's hard-disk drive business.
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Japan's

Toshiba

confirmed media reports it is talking with Fujitsu about buying

Fujitsu's

hard-disk drive business.

In a brief statement on its Web site Wednesday, Toshiba said "while the companies involved are in negotiations, nothing has been decided yet."

The deal would create the world's largest maker of small hard drives. Japan's

Nikkei

business newspaper reports the deal is worth about 30 billion to 40 billion yen ($335 million to $447 million).

Shares of Toshiba rose 6%, while Fujitsu rose 5.3% in Japanese trading.

Both Toshiba and Fujitsu focus on 2.5-inch drives that are used mainly in laptops, and the combination of their hard-disk drive operations would give Toshiba a one-third share in the global market of such devices, putting it ahead of

Hitachi

(HIT)

and

Western Digital

(WDC) - Get Report

, according to a report from

Reuters

.

Fujitsu reportedly held talks to sell its hard-disk drive business to Western Digital but the discussions fell through late last year.