Hitachi buys IBM hard disk drive business

Japanese electronics company Hitachi is to pay IBM $2.05bn (€2.18bn) for most of IBM's hard drive assets which are to be transferred into a joint venture run by the two companies.

The joint venture company will be 70% owned by Hitachi who will eventually acquire full ownership.

The joint venture will have its headquarters in IBM's offices in San Jose, California.

It will employ 24,000 people, 16,000 from IBM and the rest from Hitachi.

IBM is to buy hard drives from the joint venture to produce large corporate data storage systems.

The deal is expected to close before the end of 2002.