Japanese technology conglomerate Toshiba has announced that it is still waiting for regulators to approve the sale of its prized chip unit to US firm Bain Capital. The deal between the two entities was agreed in September, but the deal has still not been rubberstamped by regulators.
Toshiba has been desperately trying to offload its chip unit in an effort to generate much-needed finances following the bankruptcy of its US nuclear energy firm Westinghouse.
Toshiba became embroiled in protracted negotiations with Western Digital before finally agreeing to sell the chip unit to US investor Bain Capital. However, regulatory approval has not been granted which means the deal is unlikely to go through this month.
It had previously been reported that Toshiba was expected to meet all sales conditions that were initially agreed by March 23rd with the final deal then processed on March 30th, but now that appears unlikely.
In a statement issued to the press Toshiba said that antitrust approvals which were required in the deal had not yet been confirmed and that the whole process had now subsequently been delayed.
The statement read, “The satisfaction of certain conditions relating to antitrust approvals in required jurisdictions has not yet been confirmed. Although the timing of the closing has not been determined, Toshiba intends to close the transaction as soon as possible.”
Toshiba spokeswoman Midori Hara said that the deal was being held up because of China’s draconian anti-trust law. She said, “We don't know the timeline for the approval, but we are still seeking to complete the deal on March 30."
The Bain-led group that is attempting to acquire Toshiba’s memory chip business includes US tech giants Apple and Dell, whilst South Korean chipmaker SK Hynix is also believed to be in the consortium. In order to survive and avoid delisting, the cash-strapped group decided to sell its chip business - the crown jewel in a vast range of businesses ranging from home appliances to nuclear reactors.