With many PC makers and companies that support the industry -- like the LCD and storage market -- seeing massive losses, the poor economy is the time many firms consolidate and cut spending. Other firms take the opportunity to buy other firms at possibly reduced prices.

The Japanese Nikkei paper says that Toshiba is believed to be near the end of a deal that would buy Fujitsu's hard drive operations. The sale is said to be in its final stages and the price tag is said to be $335 million to $447 million.

If the purchase were completed, the newly acquired operations would make Toshiba the largest manufacturer of small hard drives. The deal is expected to be announced at the end of the month, assuming the head of both Toshiba and Fujitsu agree to the deal.

The deal would get Toshiba the two plants that are currently owned by Fujitsu and located in Thailand and the Philippines. A Fujitsu owned plant in Nagano Prefecture north of Tokyo is said to not be included in the deal.

According to Reuters, Fujitsu is looking to sell the remaining portions of its hard drive business to other firms in preparation to remove itself from the segment altogether. Fujitsu announced 500GB notebook hard drives in November.