The long-running saga over the future of Toshiba’s memory chip business — the world’s second largest supplier of NAND memory used in phones and PCs — took a big step forward after the Japanese company officially agreed to an US$18 billion sale to a consortium led by Bain Capital, which includes Apple among its backers.
A deal was agreed in principle earlier this month, with rival offers led by KKR and two Japanese funds rejected, and now Toshiba’s board has given its approval.
Toshiba is keen to sell its TMC (Toshiba Memory Corporation) business to offset losses from its bankrupted Westinghouse nuclear business which it fears may cause it to be delisted from the Tokyo stock exchange next year.
The deal is an important one, not just for Toshiba, but for the wider tech industry. Apple, for one, fears that rival Samsung, already the largest player in the memory space with 40% marketshare, could profit from the issues at Toshiba. It’s involvement in the bid — reportedly to the tune of US$7 billion — centers around keeping the industry competitive.
Full Content: Toshiba