Deals
Toshiba, Western Digital Settle Fight Over Chip Unit Sale
Toshiba Corp. and Western Digital Corp. announced the end to a months-long legal spat that had threatened to derail the $18 billion sale of Toshiba’s flash-memory business and cut the U.S. company off from a future supply of vital new products.
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Toshiba Corp. and Western Digital Corp. ended a months-long legal spat that had threatened to derail the $18 billion sale of Toshiba’s flash-memory business and cut the U.S. company off from a future supply of vital new products.
Western Digital is dropping arbitration claims in the U.S. that were aimed at stopping the sale to a consortium led by Bain Capital. In return, the Japanese company will end its legal claims against Western Digital, the two companies said in a statement. Western Digital will be able to invest alongside Toshiba in two new chip plants in Japan and receive a guaranteed supply of memory chips, they said. The U.S. company’s shares rose more than 3 percent in late trading.