The disk drive business of Fujitsu Ltd. that was sought by Lake Forest-based Western Digital Corp. late last year is being sold to Toshiba Corp., the Japanese companies said Tuesday.
Toshiba and Fujitsu, both based in Tokyo, haven’t agreed on a price yet.
What to pay for the business proved a sticking point for Western Digital, which came close to buying the business in December before pulling out.
Toshiba, which has its North American computer and chip subsidiaries headquartered in Irvine, wants the Fujitsu business to boost its share of drives used in laptop computers.
The deal stands to make Toshiba the biggest maker of drives used in laptops.
The company still has to arrange financing for the deal.
Fujitsu originally sought $660 million to $945 million for its drive business.
The money losing business is likely to sell for less given a slowdown in the drive business and lower valuations amid the global recession.
Western Digital had sought the Fujitsu business to boost its share of drives used in laptops.
A buy would have doubled Western Digital’s share to 30% and put it ahead of key rival Seagate Technology LLC in laptop drives.
Seagate, the No. 1 maker of drives, and No. 2 Western Digital control about 60% of the total market for drives used in computers and consumer electronics.
Drive makers are struggling with a slowdown in demand from computer makers and consumers that has led to an oversupply and falling prices.
Analysts see things changing in a few months after production cuts by Western Digital, Seagate and others.
