Western Digital Moves to Block Toshiba Deal in Arbitration
- Toshiba says Western Digital has ‘no ground’ to derail process
- Western Digital has chip production joint venture with Toshiba
Toshiba in Legal Row Over Chip Deal
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Western Digital Corp. is taking legal action to try to guarantee a say in who gets to buy the chip unit of Toshiba Corp., its partner in a manufacturing joint venture.
The U.S. company invoked an arbitration clause in their business agreement, which could postpone a sale Toshiba needs to complete quickly. In preparation for the divestment, the Japanese technology company transferred ownership of the unit to a separate legal entity but didn’t get permission before doing so, according to Western Digital. The two should enter binding arbitration to resolve the dispute, Western Digital said.