Apple Inc. (AAPL) Reportedly Holding Up Toshiba Chip Unit Deal

Apple Inc. (AAPL) Reportedly Holding Up Toshiba Chip Unit Deal

The global consortium, covering participants from South Korea, the United States, and Japan, includes Bain Capital, Apple Inc. and Dell Inc., and a handful of other tech players.

SK Hynix will invest a total of 4 trillion won (US$3.6 billion) in Toshiba Memory in Japan.

In a statement, SK hynix, a member of the consortium, said its participation in the acquision deal can potentially lay the foundation for it to get ahead in the NAND flash business.

The consortium, Toshiba, and Hoya Corp. will each hold stakes of 49.9 percent, 40.2 percent, and 9.9 percent, respectively, according to SK hynix.

Apple's backing is valuable as it is one of the world's biggest single buyers of NAND flash storage.

Even if Toshiba manages to sign the deal with the Bain group imminently, it is still cutting it fine as regulatory reviews often take six months.

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Western Digital filed a request for arbitration in May with the International Chamber of Commerce's International Court of Arbitration in an effort to block the sale of Toshiba Memory.

WD, a joint venture that runs a Toshiba semiconductor plant located in the city of Yokkaichi, Mie Prefecture of Japan with Toshiba, wanted to take over Toshiba Memory but failed and applied for an injunction against the sell-off of the semiconductor business to the global court in May.

Western Digital's injunction is being sought with the International Court of Arbitration, where the California-based company, which argues no deal can be done without its consent, initiated proceedings against its partner earlier this year.

Now that Toshiba aims to complete the sale of Toshiba Memory by the end of March 2018, WD is aiming to halt the sale process through a disposition by the time.

However, it preferred the Bain-led bid for the Toshiba unit on competition grounds, fearing that if Toshiba Memory Corporation were to go wholly or partly to WD it would be able to dominate the market. If it fails to eliminate its negative net worth, the Japanese company will be delisted from the Tokyo Stock Exchange.

The Japanese conglomerate is expected to seal a deal with the Bain Capital-led group soon.

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