By Simon Zekaria - 3rd March 2004
European merger regulators on Wednesday gave the green light for a joint venture between electronic giants Toshiba and Samsung in optical disk drives.
The tie-up, through the creation of a new company, involves the development, design and marketing of optical data-storage disks – including CD drives and DVD drives used in computers.
Production of the disks will be outsourced to other companies specialising in computer technology and telecommunications.
The joint venture was approved after Brussels confirmed there are sufficient competitors in the market - such as Japanese electronic companies Hitatchi, Panasonic and TEAC - to counter threats of sector-based monopolisation.
The deal “does not significantly alter the competitive landscape which is characterised by a number of competitors both big and small,” said the European Commission in a press release.
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