Toshiba and WD close to hitting a deal about contested flash unit sale

Posted on Monday, December 04 2017 @ 11:03 CET by Thomas De Maesschalck
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Long story short, Toshiba had to sell its profitable flash memory unit due to losses incurred in different divisions of the Japanese conglomerate. However, the flash unit operates a joint-venture with SanDisk, now owned by Western Digital, and the latter claims the spin-off and subsequent sale of the flash unit violates the terms of the joint-venture agreement.

Some time has passed and Bloomberg reports both companies are close to reaching a deal. The news agency picked up rumors that Western Digital will drop its legal efforts to block the sale in exchange for a new deal that involves guaranteed supply of new-generation flash chips:
Western Digital plans to end arbitration claims in the U.S. to stop Toshiba from selling the chip business to a consortium led by Bain Capital as part of the settlement, said the people, asking not to be identified because the matter is private. The U.S. company would get guaranteed supply of newer chips from a more advanced plant in Japan being built by Toshiba that it will invest in. The two sides still have to work out several key details and it’s possible a final deal will not be reached, the people said.


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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