Seagate Technology increased its market share and production capacity for computer hard drives through its acquisition of rival Maxtor.
The stock deal announced Wednesday will cost Seagate nearly $2 billion and will increase the Silicon Valley company's share of the world had-drive market from 28 percent to a whopping 42 percent, according to the Los Angeles Times.
Seagate is already the world's largest hard-drive producer.
Seagate said in its official statement that the acquisition, expected to receive regulatory approval in the second half of 2006, would achieve significant cost reductions and improved efficiency.
Analysts told the Times that the deal also brings additional production capacity to Seagate at a time when demand for hard drives for commercial electronics is growing.
Copyright 2005 by United Press International
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