The European Commission has approved under the EU Merger Regulation the proposed acquisition of the hard disk drive business of Fujitsu Limited by Toshiba Corporation (both Japanese companies). Toshiba manufactures and markets a diverse range of high technology electronic and electrical products, including hard disk drive (“HDD”) products. Fujitsu’s business consists of worldwide assets and subsidiaries engaged in the production, design, sales, and research and development of HDDs. Although the transaction would result in the combined entity being the number one producer of Mobile HDDs, (in particular of 2.5" Mobile HDDs in term of market share) the Commission's market investigation revealed that the HDD market was competitive and that the transaction would therefore not give rise to competition concerns in these markets. The Commission found that post-transaction, Toshiba would continue to face significant competitors, in a market where technological progress is relatively fast, resulting in short product life cycles. Further, the Commission concluded that the combined entity was unlikely to prevent the access of downstream competitors to Mobile HDDs as inputs; Toshiba does not possess sufficient market power in Mobile HDDs and does not represent a significant part of the demand for Mobile HDDs, so there was no risk of excluding competing suppliers of Mobile HDDs from access to customers.