Evaluation of Hold-Separate Conditions on Western Digital/Hitachi and Seagate/Samsung Mergers
Edgeworth Partners Dr. Fei Deng and Dr. Gregory K. Leonard served as outside experts for China’s MOFCOM in its investigation of whether to lift the hold-separate conditions imposed on two hard-drive mergers—Seagate/Samsung and Western Digital/Hitachi. They led an Edgeworth team and worked directly with the MOFCOM case team in reviewing documents, data, and economic reports the parties produced, devising follow-up requests, analyzing market definition and competitive effects using both qualitative and quantitative approaches, and preparing and delivering analyses and recommendations to MOFCOM.
The Edgeworth team conducted extensive economic analyses, exchanged analyses and reports with the parties’ economists, and engaged in several rounds of dialogue with the parties’ business people, counsel, and economists. The Edgeworth team also conducted a wide survey of third parties.
As a result of this investigation, MOFCOM substantially released the hold-separate conditions imposed on these two mergers in October 2015.