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Western Digital set to buy Toshiba's chip business

(Image credit: Image Credit: Toshiba)

Toshiba finally seems ready to sell its chip business, with a group led by Western Digital in prime position to make the purchase. 

A new Reuters report has claimed that the two companies are in ongoing talk over the acquisition, which could be worth as much as $18.3 billion.

The formal decision should be made next Wednesday (Septmber 20), after a board meeting the same day. As the price is now reportedly set, all that remains to be settled is determining how big a stake Western Digital will gain in the unit.

Western Digital is not the only company that's looking to buy Toshiba's chip business. KKR & Co LP and Japanese government investors, as well as Bain Capital and South Korea’s SK Hynix, and Foxconn are among those also tipped for the deal, however WD seems poised to be successful.

Some media are also reporting that Bain Capital-backed consortium has upped its offer in the matter to $22.3 billion. Apple also weighed in on the matter, backing three competing offers and even saying it will stop buying Western Digital products for its iPhone if the deal goes through. Apple apparently said it worries about pricing.

Toshiba is caught between a rock and a hard place, as its failing nuclear power plant Westinghouse filed for bankruptcy earlier this year, causing billions in losses.

Image Credit: Toshiba