Reuters is reporting that Samsung Electronics has agreed to sell its hard drive business to Seagate Technology for $1.4 billion in cash and stock. The move is seen as two pronged: first, it will allow Samsung to exit an extremely competitive market and refocus its efforts on its successful memory-chip business. Secondly, it will allow Seagate to be more competitive with Western Digital — a company that has announced its intentions to purchase Hitachi’s hard-drive business for more than $4.3 billion. “The transactions and agreements significantly expand Seagate’s customer access in China and Southeast Asia,” reads a statement released by both companies. The deal will see Samsung become the second largest shareholder in Seagate — with a nearly 10% share worth over $687 million — and the assets should be transfered sometime in 2011.