China Approves Sale of Toshiba's Chip Unit

Evarado Alatorre
May 18, 2018

TOKYO-China has approved USA private-equity firm Bain Capital's $18 billion deal for Toshiba Corp.'s memory-chip unit, in a possible gesture of goodwill as Beijing tries to stave off US trade penalties.

For those who came in late, Toshiba has been trying to flog off Toshiba Memory to pay for a disasterous deal where it bought a U.S. nuclear power company Westinghouse.

The acquisition is set to be completed on June 1, Toshiba said.

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"However all antitrust approvals have now been received and we are looking forward to closing this investment", Bain Capital said in a statement yesterday.

Toshiba on May 17 issued a statement confirming "receipt of all required antitrust approvals in respect of the sale of Toshiba Memory". Toshiba was apparently so convinced the deal was dead and buried that it had even developed contingency plans that included possibly taking its memory business public or offering its sale to an alternative consortium.

The deal will see Toshiba reinvest in the unit and together with Hoya Corp, a maker of parts for chip devices, Japanese firms will hold more than 50 per cent of the business - a keen wish of the Japanese government. Toshiba is No. 2 in the NAND flash memory market after Samsung Electronics.

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