China approves sale of Toshiba memory unit

ImageToshiba once symbolized Japan's technological might but it has more recently been scrambling

ImageToshiba once symbolized Japan's technological might but it has more recently been scrambling

Nevertheless, the regulator's approval will mean that the company now has the green light to complete the transaction, agreed a year ago, which values the company at $18 billion.

The Chinese approval came a little later than expected as the deal was initially anticipated to close in March, the fiscal year-end for the Japanese company.

For those who came in late, Toshiba has been trying to flog off Toshiba Memory to pay for a disasterous deal where it bought a United States nuclear power company Westinghouse.

Toshiba confirmed, adding that it expects to finalize the deal on June 1 at the latest.

Some market watchers as well as memory chipmakers had expressed concerns over the impact of the deal between Toshiba and the Bain-led group on the global chip industry.

The anti-monopoly review had been the last and biggest hurdle to a successful sale of Toshiba Memory, the world's No. 2 producer of NAND chips.

"However all antitrust approvals have now been received and we are looking forward to closing this investment", Bain Capital said in a statement yesterday.

Bain's consortium includes South Korean chipmaker SK Hynix, Apple Inc, Dell Technologies, Seagate Technology and Kingston Technology.

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