Toshiba Says It Favors Bain Group’s Bid for Microchip Business
- 7 years ago
Toshiba Says It Favors Bain Group’s Bid for Microchip Business
Once a symbol of Japan’s technical prowess and postwar rise, Toshiba said this year
that it would have trouble staying in business because of losses from Westinghouse Electric, its nuclear power business in the United States, which was slammed with cost overruns and filed for bankruptcy court protection in March.
A deal, which Toshiba hopes to complete by this month, is widely expected to value the chip business at more than $20 billion —
a potential shot in the arm for a company struggling with the aftermath of a disastrous bet on building nuclear power plants.
Western Digital shares ownership with Toshiba of a flash memory production operation in Japan and argues
that the Japanese company cannot sell the chip business to an outside party without its approval.
They will seek to strike a deal over Toshiba’s chip business, the world’s second-largest manufacturer of
flash memory chips, which are used to store data in millions of smartphones and other digital devices.
TOKYO — Toshiba Corporation, the struggling Japanese conglomerate, will once again try to sell
its immensely valuable microchip business to a group of American and Japanese buyers.
That could leave an opening for new bids from Western Digital, another potential American suitor,
and Foxconn, an electronics manufacturer based in Taiwan that has extensive operations in mainland China.
Once a symbol of Japan’s technical prowess and postwar rise, Toshiba said this year
that it would have trouble staying in business because of losses from Westinghouse Electric, its nuclear power business in the United States, which was slammed with cost overruns and filed for bankruptcy court protection in March.
A deal, which Toshiba hopes to complete by this month, is widely expected to value the chip business at more than $20 billion —
a potential shot in the arm for a company struggling with the aftermath of a disastrous bet on building nuclear power plants.
Western Digital shares ownership with Toshiba of a flash memory production operation in Japan and argues
that the Japanese company cannot sell the chip business to an outside party without its approval.
They will seek to strike a deal over Toshiba’s chip business, the world’s second-largest manufacturer of
flash memory chips, which are used to store data in millions of smartphones and other digital devices.
TOKYO — Toshiba Corporation, the struggling Japanese conglomerate, will once again try to sell
its immensely valuable microchip business to a group of American and Japanese buyers.
That could leave an opening for new bids from Western Digital, another potential American suitor,
and Foxconn, an electronics manufacturer based in Taiwan that has extensive operations in mainland China.