Toshiba receives China green light in $18B chip sale

Lester Mason
May 18, 2018

The parties will now take necessary procedures to close the transaction, which is currently expected to occur on June 1, 2018. The delay was widely seen as a sign from Beijing of the ways it could punish American businesses if the Trump administration followed through on threats to impose tariffs on $150 billion in Chinese-made goods.

At its earnings briefing on Tuesday, Toshiba CEO Nobuaki Kurumatani said, "we haven't heard anything negative from Chinese regulators".

"The Bain Capital-led consortium has committed to make significant capital investments to help develop and grow semiconductor technology".

Toshiba confirmed receipt of all required anti-trust approvals in respect of the sale of Toshiba Memory Corporation. Bain's group includes SK Hynix Inc., Apple Inc., Hoya Corp. and Seagate Technology Plc with Toshiba to retain a stake in the business. It is no longer desperate for cash after a US$5.4 billion new share issue to foreign investors late previous year and some activist shareholders oppose the sale, arguing it significantly undervalues the unit.

Nikkei reported the Chinese approval earlier on Thursday.

Other reports by Iphone Fresh

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