To: HGST and WD Employees
Subject: MOFCOM Announcement
Steve Milligan
President and Chief Executive Officer
Yesterday we announced that Western Digital Corporation has successfully resolved two non-compliance matters with China’s Ministry of Commerce (MOFCOM) as part of our ongoing and constructive dialogue with the agency regarding the hold separate condition associated with the acquisition of HGST in March 2012.
Western Digital is fully complying with the agreed upon resolutions, which include the reorganization of a WDC department with several former HGST employees, re-alignment of the ownership structure of an indirect subsidiary of WDC, and payment of a fine in the amount of approximately $100,000 USD. These actions will be neutral and non-material from a tax and financial standpoint.
MOFCOM continues to express overall satisfaction with our compliance efforts, and we are encouraged by the productive nature of our ongoing dialogue with the agency. While we cannot predict whether or when the agency will lift the hold separate condition, MOFCOM has indicated that it is now fully focused on considering our application to lift the restriction. In the meantime, we will continue to comply with the hold separate and appreciate your ongoing diligence in this regard.
We remain committed to providing you with MOFCOM-related updates as they become available.
Thank you for your ongoing support and focus during this time.
Steve
To: HGST and WD Employees
Subject: MOFCOM Announcement
Steve Milligan
President and Chief Executive Officer
Yesterday we announced that Western Digital Corporation has successfully resolved two non-compliance matters with China’s Ministry of Commerce (MOFCOM) as part of our ongoing and constructive dialogue with the agency regarding the hold separate condition associated with the acquisition of HGST in March 2012.
Western Digital is fully complying with the agreed upon resolutions, which include the reorganization of a WDC department with several former HGST employees, re-alignment of the ownership structure of an indirect subsidiary of WDC, and payment of a fine in the amount of approximately $100,000 USD. These actions will be neutral and non-material from a tax and financial standpoint.
MOFCOM continues to express overall satisfaction with our compliance efforts, and we are encouraged by the productive nature of our ongoing dialogue with the agency. While we cannot predict whether or when the agency will lift the hold separate condition, MOFCOM has indicated that it is now fully focused on considering our application to lift the restriction. In the meantime, we will continue to comply with the hold separate and appreciate your ongoing diligence in this regard.
We remain committed to providing you with MOFCOM-related updates as they become available.
Thank you for your ongoing support and focus during this time.
Steve
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