After months of back and forth, Toshiba has reportedly signed an $18 billion deal to sell off its chip business. In the end, Toshiba did not end up selling its stake to Western Digital, opting for a consortium led by Bain Capital LP instead. Interestingly, this consortium does include SK Hynix, which is exactly what Western Digital wanted to avoid.

In an email sent to me earlier this morning, SK Hynix confirmed that its board of directors approved the plan to participate in Bain Capital’s consortium. In all, the consortium will be investing around two trillion Yen. SK Hynix will be contributing 395 billion Yen to the cause.

With this deal, Japanese companies will still control at least 50 percent of the business, which should help keep Japan’s government happy. Toshiba will also keep a seat at the table as it will still hold 40.2 percent of Toshiba Memory Corp. The Bain-led consortium will hold a 49.9 percent stake and Japanese medical company, Hoya Corp, will own 9.9 percent.

We have yet to see a statement from Western Digital regarding the sale. It is no secret that WD either wanted to buy TMC itself, or have a say in who gets to in order to avoid being paired up with a competitor.

KitGuru Says: The Toshiba Memory Corp sale has been quite the saga with many twists and turns. However, this appears to be the end of it for the time being.

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