China greenlights… the sale of a majority
stake in Toshiba’s microchip business to a consortium led by a U.S. investment firm. The move is seen as a significant peace offering
to the Trump administration. Kim Hye-sung zooms in on what could be a welcome
turn around in the trade spat between the two superpowers. Toshiba said Thursday it has received regulatory
approval from China for the sale of its memory chip business to a consortium led by U.S.
investment firm Bain Capital. The Japanese electronics company said the
18 billion U.S. dollar deal is expected to be completed on June 1st, now that it has
gained anti-trust approval from all necessary regulators. Bain Capital, in a statement, welcomed the
approval from China, and said the transaction will help ensure a competitive global semiconductor
market and respond to fast-changing demands. Bain Capital leads a group of investors including
Apple, Dell Technologies, and South Korean semiconductor company SK Hynix. Beijing’s anti-trust approval was needed
because China is the biggest market for the chips. The deal, which was first announced in September
last year, received clearance less than two weeks before a deadline on the decision,…
and as Chinese negotiators hold trade talks with the U.S.
Toshiba, which invented NAND chip technology, put its chip business up for sale after losing
billions of dollars from its push into nuclear energy. South Korea’s SK Hynix is expected to secure
a stake of up to 15 percent by investing three-point-seven billion dollars into the consortium deal. Currently, SK Hynix is the world’s number
four in NAND flash-memory chips global market share, and the deal is expected to further
boost its position in the global chip business. Kim Hyesung, Arirang News..