Investing.com -- Goldman Sachs maintained its Buy rating on TDK shares. Toshiba and Seagate Technology (NASDAQ: STX) are pursuing the acquisition of TDK's magnetic head business, according to a report. The potential deal is expected to reach hundreds of billions of yen.

Toshiba began discussions with TDK about purchasing the magnetic head business in spring 2026. Seagate later submitted a higher offer during the summer months. Goldman wrote today: "...we take no view on the veracity the article".

Both companies are concerned about magnetic head procurement risks if they fail to secure the acquisition. Three-party talks involving Toshiba, Seagate, and TDK have begun to address continued supply arrangements, including the possibility of forming a joint venture. These discussions started last week and remain in early stages, with the possibility that negotiations may not result in an agreement.

Any potential acquisition or joint venture formation would require antitrust review by authorities due to national economic security considerations, particularly regarding data center storage.

TDK responded to the report by stating that while the company is working to strengthen its business portfolio to improve corporate value, the information did not originate from TDK and no decisions have been made.

Following a potential sale, TDK plans to increase investment in batteries, passive components, and sensors. The company expects rapid growth in demand for wearable devices such as smart glasses driven by AI-related applications.