Western Digital: China MOFCOM's Decision Enables Integration Of HGST, WD Units

(RTTNews) - U.S. hard-drive maker Western Digital Corp. (WDC) announced Monday a decision from China's Ministry of Commerce or MOFCOM, which enables the company to integrate substantial portions of its HGST and WD subsidiaries under Western Digital.

The company noted that the agency's decision is the result of an ongoing dialogue regarding the "hold separate" restriction associated with Western Digital's acquisition of HGST in March 2012. Integration activities will begin immediately and are expected to continue over the next 24 months.

As part of the agreement with MOFCOM, Western Digital will continue to offer both HGST and WD product brands in the market and maintain separate sales teams for two years from the date of the decision.

Western Digital expects the integration of corporate and other key functions, including research and development, heads and media operations, engineering and manufacturing, will result in significant opportunities for growth, synergies and cost savings consistent with its planned levels.

The company also announced that Mike Cordano, formerly president of the HGST subsidiary, has been appointed president and chief operating officer of Western Digital. In his new role, Cordano will head a business leadership team with balanced representation of proven leaders from the company's two former subsidiaries.

Jim Murphy, who previously served as president of the WD subsidiary, will lead the Storage Devices business unit. Jim Welsh and Dave Tang will lead the company's Content Solutions and Storage Solutions business units, respectively.

Steve Milligan will continue to serve as chief executive officer of Western Digital and oversee all business and corporate functions.

The appointments are effective immediately.

In pre-market activity, Western Digital shares were gaining 1.23 percent to trade at $80.50.