Western Digital Resolves 2 Non-compliance Matters With China's MOFCOM

(RTTNews) - Western Digital Corp. (WDC) said it has resolved two non-compliance matters with China's Ministry of Commerce or "MOFCOM", as part of its ongoing and constructive dialogue with the agency regarding the hold separate restriction associated with WDC's acquisition of HGST in March 2012. These steps represent significant progress in its relationship with MOFCOM and that, while it cannot predict whether or when the agency will lift the hold separate condition, MOFCOM has indicated to the company that it is now fully focused on considering Western Digital's application to lift the restriction.

MOFCOM continues to express overall satisfaction with the company's efforts to comply with its hold separate remedy. WDC still believes that a lift of the condition best serves the interests of the company, the industry, the Chinese economy and consumers across the globe.

The firm is complying with resolutions associated with these matters, which relate to the organization of a WDC department that included several former HGST employees, and the re-alignment of the ownership structure of an indirect unit of WDC. In order to implement these resolutions, the company would pay a penalty of 600,000 RMB or around $100,000 in total, conduct an immaterial reorganization of the department in question, and make certain modifications to its subsidiary structure that would be neutral and non-material from a tax and financial standpoint.