Toshiba Chip Sale Cleared by China Regulator

Toshiba Chip Sale Cleared by China Regulator

Foto: Depositphotos

Toshiba got regulatory approval from China for the sale of its memory chip business, clearing the way for the 2 trillion yen ($18 billion) deal with a group led by Bain Capital, according to Bloomberg.

The sale of the semiconductor business will take place on June 1 after approval was gained from all necessary regulators, the company said in a statement. The deal had already missed earlier deadlines for clearance as the companies waited on Chinese antitrust authorities to make a decision.

“We are making this important investment because we see the opportunity to further grow Toshiba Memory Corporation,” Bain Capital said in a statement. “This transaction will help ensure a competitive global semiconductor market and protect the supply chain from potential disruption.”

Toshiba, which invented NAND chip technology, put the business up for sale more than a year ago as it sought to repair a balance sheet hammered by billions of dollars worth of losses from a push into nuclear energy. Bain’s group includes SK Hynix, Apple, Hoya and Seagate with Toshiba to retain a stake in the business.

China’s approval was needed because the country is the biggest market for chips. Officials at the Ministry of Commerce were concerned Hynix may end up with a significant stake in Toshiba’s chip business, consolidating power among the top players, people familiar with the matter have said.

The Bain approval comes just days after China is said to have resumed considering Qualcomm’s bid for NXP. While the chip unit sale was designed to avoid a delisting from the Tokyo stock exchange, Toshiba’s finances have recovered since it was first proposed. The company boosted its capital with a 410 billion yen nuclear asset sale and 600 billion yen of new stock in December.

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