Chinese anti-corruption ministry with no confirmation…Toshiba Memory’s ‘March disposal’ not to proceed
Park Jung Il | comja77@ | 2018-04-02 10:48:06
The sale of Toshiba memory in Japan eventually passed the scheduled deadline. This is because the Chinese antitrust authorities are not approving the sale of the semiconductor industry.
According to the semiconductor industry and foreign sources on April 1, the Chinese antitrust authorities did not approve a plan to sell Toshiba memory, which produces NAND flash, to the US-Japan alliance led by US private fund Bain Capital. As a result, the plan to end the sale of Toshiba memory by the end of last month was canceled.
The Toshiba memory sale plan has been approved by seven countries including the United States, Japan, the European Union, Brazil, the Philippines and Taiwan, including South Korea, but has failed to pass the screening by the Chinese authorities. Some of the semiconductor industry`s view is that it is not deliberately delayed approval by the Chinese government to declare `semiconductor roaming` and foster its own memory semiconductor industry.
It was also pointed out that if Toshiba overturned the sale, Toshiba could withdraw its sale and raise Toshiba`s memory by listing or re-selling the memory. In fact, some Toshiba shareholders are reportedly asking for a listing or renegotiation, saying that the sale price is too low.
However, Toshiba plans to continue the sale process. Toshiba said in a statement issued on March 26, "The contract will be concluded on March 30 when conditions for closing the contract by March 23 are fulfilled." However, it has not yet been confirmed whether the conditions for antitrust approval have been met. "It is difficult to specify when to close the deal, but Toshiba wants to close the deal as soon as possible," he stated.
A spokesman for Toshiba said it still had plans to sell it as soon as possible although it was still not approved by some antitrust authorities on Monday. As a result, the sale of Toshiba memory is not likely to be broken down immediately. Park Jung-ho, president of SK Telecom, an SK Hynix affiliate participating in the Korea-US alliance, recently told reporters that he is in talks with Chinese authorities.
According to the foreign ministry, the Commerce Department of China may demand Toshiba to freeze NAND flash prices or to separate SSD (solid state drive) and semiconductor memory business. Toshiba and the US-Japan alliance have announced that they will hold a temporary second sale deadline on May 1 as they pass the first sale deadline. To meet this demand, China needs approval by April 13th.
An expert of the semiconductor industry said, "Qualcomm`s acquisition of NXP in the Netherlands was also formalized in September 2016, which was not approved this year in Korea," he said. However, foreign investors and semiconductor makers believe that Toshiba`s lack of funds, which was originally the reason for the sale of Toshiba`s memory, was resolved by the increase in December last year.
By Park Jung Il comja77@
[ copyright ⓒ The Digitaltimes ]
According to the semiconductor industry and foreign sources on April 1, the Chinese antitrust authorities did not approve a plan to sell Toshiba memory, which produces NAND flash, to the US-Japan alliance led by US private fund Bain Capital. As a result, the plan to end the sale of Toshiba memory by the end of last month was canceled.
The Toshiba memory sale plan has been approved by seven countries including the United States, Japan, the European Union, Brazil, the Philippines and Taiwan, including South Korea, but has failed to pass the screening by the Chinese authorities. Some of the semiconductor industry`s view is that it is not deliberately delayed approval by the Chinese government to declare `semiconductor roaming` and foster its own memory semiconductor industry.
It was also pointed out that if Toshiba overturned the sale, Toshiba could withdraw its sale and raise Toshiba`s memory by listing or re-selling the memory. In fact, some Toshiba shareholders are reportedly asking for a listing or renegotiation, saying that the sale price is too low.
However, Toshiba plans to continue the sale process. Toshiba said in a statement issued on March 26, "The contract will be concluded on March 30 when conditions for closing the contract by March 23 are fulfilled." However, it has not yet been confirmed whether the conditions for antitrust approval have been met. "It is difficult to specify when to close the deal, but Toshiba wants to close the deal as soon as possible," he stated.
A spokesman for Toshiba said it still had plans to sell it as soon as possible although it was still not approved by some antitrust authorities on Monday. As a result, the sale of Toshiba memory is not likely to be broken down immediately. Park Jung-ho, president of SK Telecom, an SK Hynix affiliate participating in the Korea-US alliance, recently told reporters that he is in talks with Chinese authorities.
According to the foreign ministry, the Commerce Department of China may demand Toshiba to freeze NAND flash prices or to separate SSD (solid state drive) and semiconductor memory business. Toshiba and the US-Japan alliance have announced that they will hold a temporary second sale deadline on May 1 as they pass the first sale deadline. To meet this demand, China needs approval by April 13th.
An expert of the semiconductor industry said, "Qualcomm`s acquisition of NXP in the Netherlands was also formalized in September 2016, which was not approved this year in Korea," he said. However, foreign investors and semiconductor makers believe that Toshiba`s lack of funds, which was originally the reason for the sale of Toshiba`s memory, was resolved by the increase in December last year.
By Park Jung Il comja77@