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Toshiba finally completes chip business sale

(Image credit: Image Credit: Toshiba)

The Toshiba – Bain saga has finally come to an end, and a happy and, at that. The sale of the company’s chip unit has finally been completed. US private equity firm Bain Capital has acquired Toshiba’s chip business for $18 billion.

The deal has been making headlines for months now, and should have been completed during March this year. However, Chinese authorities took a bit longer to approve the deal, and had finally completed their work in May.

Now, the second largest NAND chips producer is in the ownership of Bain Capital – a consortium consisting of SK Hynix, Apple, Dell, Seagate and Kingston.

It was also said that Toshiba repurchased 40 per cent of the unit.

The Japanese tech giant fell into financial trouble after its nuclear unit, Westinghouse, collapsed and shot the company’s expenses into the stratosphere.

In early January this year, Toshiba sold its nuclear group Westinghouse to Canadian asset manager Brookfield for $4.6bn deal. The group went bankrupt in March last year.

“We’ve been making various efforts to close the deal in March,” Yasuo Naruke, the head of Toshiba’s chip unit, told reporters in late April. But if that does not happen, the deal will close “at some point in April, May or June,” Naruke added.

Image Credit: Toshiba