Shareholders clear Seagate's Maxtor takeover

The transaction is now likely to close in the next two or three business days, as regulatory approval has already been secured

Storage giant Seagate has moved closer to completing the takeover of Maxtor, after the shareholders of both firms approved the deal.

Seagate announced on Thursday that the transaction is now likely to close in the next two or three business days, as regulatory approval has already been secured.

Seagate announced in December 2005 that it had made a $1.9bn (£1bn) bid for its smaller rival. It claims that swallowing Maxtor will result in greater efficiency and better, cheaper products for consumers.

"Seagate has approached this transaction much differently than traditional mergers and acquisitions. This combination will deliver greater scale by leveraging Seagate's successful business model, and is not intended to be a traditional integration of product lines or operations," said Bill Watkins, Seagate's president and chief executive, in a statement.

Once the takeover is complete, existing Seagate shareholders will own 84 percent of the company, with Maxtor's shareholders owning 16 percent.

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