Deals
Micron Seen Saving $400 Million on Elpida Due to Weak Yen
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Micron Technology Inc. is poised to get a $400 million discount on the acquisition of Japanese rival Elpida Memory Inc., after a 16 percent slump in the yen against the U.S. dollar.
The yen has declined to 94.52 per dollar, at 1:16 p.m. in New York, compared with 79.51 on July 2, when the takeover was announced. If the deal to buy Elpida for 200 billion yen were to be completed today, Micron would pay $2.12 billion, compared with $2.52 billion at the time it was announced. Even so, some of the benefit may be limited by hedges made to protect against a rise in the currency, which didn’t materialize.