Western Digital does not agree with the participation of SK Hynix in the purchase of semiconductor manufacturing Toshiba
Western Digital has notified the company Toshiba, will not agree to the sale of its semiconductor manufacturing consortium, which includes the company SK Hynix. As you know, last week, Toshiba was named the consortium preferred by the buyer.
For Western Digital, serving as a partner with Toshiba in a joint venture for the production of flash memory, SK Hynix is a competitor. It is not surprising that Western Digital is trying to block the sale of semiconductor manufacturing to Toshiba.
According to Western Digital, expressed in a letter to the Board of Directors of Toshiba, SK Hynix participation «will increase the likelihood of leakage of technology and prevent the joint venture to move forward.»
Besides SK Hynix, the consortium includes the Fund Innovation Network Corporation of Japan, investment company Bain Capital Private Equity LP and the Bank Development Bank of Japan. The South Korean company will provide half of the $ 7.6 billion allocated to the transaction Bain Capital Private Equity LP.
Toshiba is in a hurry to sign the agreement prior to the annual meeting of shareholders scheduled for June 28.