China's Ministry of Commerce and antitrust regulations approve of deal
SAN FRANCISCO — China's antitrust regulators approved the $18 billion of Toshiba's memory chip unit to a consortium led by Bain Capital, clearing the way for the deal to be finalized by June 1, Toshiba said.
Approval by China's Ministry of Commerce (Mofcom) was the last remaining hurdle to completion of the deal. In addition to Bain, a U.S. private equity firm, the consortium also includes Apple, Dell and SK hynix.
Mofcom's delay in granting approval to the deal had been seen in some quarters as an indication that China might hold off on giving it the greenlight as a result of ongoing trade tensions between the U.S. and China.
Toshiba has been trying for well over a year to sell its memory chip business — including its large NAND flash business — to offset massive losses by its U.S. nuclear power subsidiary. The deal with the Bain-led consortium was first announced last September.
As recently as earlier this month there were some indications that Toshiba might scrap the sale amid the long delay in Chinese review. But Toshiba said Thursday that all required antitrust approvals have now been received and all conditions for the sale have been satisfied.
— Dylan McGrath is the editor-in-chief of EE Times.