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Toshiba names preferred bidder for memory business

by on23 June 2017


Japanese consortium with deep pockets might win


Toshiba has named a consortium made up of the Innovation Network of Japan, Bain Capital and Development Bank of Japan, as the preferred bidders for its memory business.

The company plans to sell the microchip business to a consortium comprised of the Innovation Network of Japan, Bain Capital and Development Bank of Japan. Details of the deal were not made public, but analysts have estimated the division is worth $20 billion.


The move dashes the hopes of industry backed consortiums who wanted the outfit to sort out their memory woes. Companies including Apple, Google, hardware manufacturer Foxconn and Broadcom were all assembling bids for the division this year.

In a statement announcing the move, Toshiba said the deal with the group met all of its major concerns for the company’s short- and long-term needs. Toshiba hopes to close the agreement by next March.

“Toshiba has determined that the consortium has presented the best proposal, not only in terms of valuation, but also in respect to certainty of closing, retention of employees, and maintenance of sensitive technology within Japan.” 

The deal might not be sorted out that quickly. Toshiba partner Western Digital has argued that it should be allowed a say in who buys Toshiba's microchip business.

In a statement, Western Digital said it “will continue to protect its [joint venture] interests and preserve its rights” through arbitration and the courts.

Since Toshiba announced plans to sell off its microchip division, the sector has been a strong target for a variety of parties.

But as the New York Times noted, the emphasis on overseas bidders made Japanese officials push for a majority-domestic group to acquire Toshiba’s microchip division over concerns internal technology and trade secrets could be accessed by foreign governments. China's Foxconn reportedly lost traction in the bidding process because of these concerns.

Last modified on 23 June 2017
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