Toshiba Sale Faces Delay as Banks Wary on Financing, Sources Say
- Japanese lenders reluctant to commit without buyout detail
- Borrowing costs leave banks less willing to take M&A risk
A takeover of Toshiba Corp., which could be the biggest buyout in Asia this year, is at risk of slipping behind schedule as the bidding groups run into obstacles securing financing commitments from banks.
The consortium led by Japan Industrial Partners Inc. and a rival group led by state-backed investment fund Japan Investment Corp. will find it hard to meet a Nov. 7 deadline, set by the iconic conglomerate, to line up commitment letters, according to people familiar with the matter. Some global banks have turned cautious over backing large buyouts like Toshiba amid rising borrowing costs in the US and elsewhere, the people said. Inflation has even increased in Japan, though the central bank is an outlier in maintaining a loose monetary policy.