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Bain Capital to buy Toshiba's chip business for $18 bln

Wednesday, September 20, 2017 - 01:17

A group led by U.S. private equity firm Bain Capital, that includes Apple and Dell, will buy Toshiba's semiconductor business for $18 billion. Fred Katayama reports.

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A group led by Bain Capital is buying Toshiba's semiconductor business for $18 billion. That group includes buyers of Toshiba chips, Apple and Dell. A sale will help Toshiba dig out from the financial hole caused by its now bankrupt U.S. nuclear unit Westinghouse. It will also allow the Japanese electronics giant to stay listed on the Tokyo stock exchange. Reuters correspondent Liana Baker. (SOUNDBITE) LIANA BAKER, REUTERS CORRESPONDENT (ENGLISH) SAYING: "Being an owner in this joint venture, the Toshiba NAND business, they make sure that it doesn't get into the hands of their competitors. They may now have a way to control the supply chain. There is a lot of demand for this flash memory, which is the product that this company makes, and having and ownership in it, really secures the supply for them going forward." One company that could challenge the deal is Western Digital, Toshiba's joint venture chip partner in the U.S. It wanted to buy the semiconductor unit. But it didn't agree to limits to any future stake in the chip business. Sources say that was a dealbreaker for Toshiba. Western Digital said it's "disappointed" with Toshiba's decision.

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Bain Capital to buy Toshiba's chip business for $18 bln

Wednesday, September 20, 2017 - 01:17