EU Approves Samsung, Toshiba Joint Venture Mar 8, 2004

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The European Commission (EC) has approved a joint venture involving the optical-disk drive divisions of Japan's Toshiba Corp. and Korea's Samsung Electronics Co. Ltd. to produce CD-ROM and DVD-ROM units.

Ownership of the new company, to be called Toshiba Samsung Storage Technology Corp., will be divided, with 51 percent belonging to Toshiba and 49 percent belonging to Samsung Electronics. Combined revenues are expected to be about U.S. $2.3 billion this year.

Although the combined companies will have a global market share of optical storage products of 22 percent, the EU Commission said "the deal does not significantly alter the competitive landscape, which is characterized by a number of competitors both big and small."

Rivals include Taiwan's Lite-On Group and Japan's TEAC Corp., the Commission said.

The joint venture will begin April 1 and will develop, produce, sell, and market CD-ROM devices, including CD-ROM and DVD-ROM drives for notebook computers. (Associated Press)

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