Western Digital Restarts U.S. Security Review of Share Sale

  • Tsinghua deal refiled with national security committee
  • Cfius likely to decide whether it has jurisdiction next month

Western Digital Corp. restarted the U.S. security review of its share sale to Tsinghua Unisplendour Corp. this month after withdrawing its previous filing in November.

The hard-drive maker said in a regulatory filing dated Jan. 26 that the Committee on Foreign Investment in the U.S. is expected to decide by next month whether it has jurisdiction over the $3.8 billion deal.

CFIUS, which is led by the Treasury Department and includes the Defense Department and the State Department, reviews acquisitions of U.S. businesses by foreign investors and can recommend the president block any transaction it deems could compromise national security.

Western Digital agreed in September to sell a 15 percent stake to Tsinghua. Less than a month later, it reached a deal to buy SanDisk Corp. A review by CFIUS, which is tasked with guarding against security risks, can last up to 75 days.

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