Western Digital eyes up Toshiba’s memory chip business
The use of memory chips is becoming increasingly utilised within digital applications, where it is clear it is becoming a lucrative market.
Western Digital has therefore become part of a consortium to which it is offering 1.9 trillion yen ($17.4 billion) in order to acquire Toshiba’s memory chip business. Also within the consortium is Innovation Network Corporation of Japan and Development Bank of Japan, according to Reuters. Toshiba are selling the business unit to cover losses created through its nuclear power operations in the US.
Innovation Network of Japan and the Development Bank of Japan will reportedly place 300 billion yen into the bid, alongside further investments from other companies which are involved in the consortium.
- Japan Tobacco acquires Mighty Corp for $396 million
- Infosys is in choppy waters
- Top companies influencing Asia business
It will enable the company to have the majority stake remains in Japan and aim to seal the deal fairly quickly and adhere to Japanese requirements.
Previous talks with private equity firm Bain Capital and SK Hynix fell through as a result of Toshiba’s decision to take the company to court surrounding the potential sell.
Toshiba now needs to sell its memory chip division by the end of August to gain regulatory approval, and eliminate the risk of being potentially de-listed from the Tokyo Stock Exchange.
Original source: Reuters
Business Review Asia Magazine - August issue