A PYMNTS Company

China: Regulators worried about Hynix in Toshiba probe

By  |  December 18, 2017

According to sources who are close to the issue, antitrust officials in China’s Ministry of Commerce are currently investigating the role that South Korea’s Hynix Inc will play in the sale of Toshiba Corp’s memory chip business. The antitrust officials are concerned as they are currently reviewing the deal.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Chinese officials are currently investigating the fact that the South Korean company will take a large stake in the business if Toshiba’s memory chip unit sell goes ahead. This was revealed by the sources who preferred not to be identified due to the sensitive nature of the matter. They further added that Toshiba would have to reassure the regulatory officials that the sale will not hurt their competition. To see that things are done right, the ministry could impose conditions on a deal, they added.

    Currently, China is the largest market for semiconductors globally, with the country investing billions as they look to build their domestic industry. Hynix is the second-biggest maker of memory chips in the country and is a part of the group led by Bain Capital that will purchase the memory chip business from Toshiba in a deal worth 2 trillion yen (US$18 billion). Hynix is financing its part of the deal via its convertible bonds that will see it control 15% of the voting right in the business.

    Full Content: Bloomberg

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.