Toshiba expects that the sale of the semiconductor business of the company Western Digital for $18 billion to be completed no later than June, unless of course it’s not going to happen in the agreed time to the end of the fiscal year ending March 31. The uncertainty of the timing is due to the fact that the parties to the transaction is now awaiting approval by the Chinese regulator.
“We have made every effort to close the deal in March”, — said to journalists on Friday Naruke Yasuo (Yasuo Naruke), head of the semiconductor division of Toshiba in the course of the visit in a new research center in Central Japan. He expressed confidence that even if you fail to make it to the scheduled date, the transaction will be completed “at some point in April, may or June”.
However, according to many experts, it is highly unlikely that by the end of the financial year to March, Toshiba will receive the necessary approval of the regulator, because consideration of such deals by Chinese regulatory authorities typically takes at least six months.
Toshiba is not so in a hurry to complete the transaction as early as she was able to obtain financial investment in the end of last year from foreign investors. If the transaction is not completed by 31 March, Toshiba will be able to abandon the sale of the semiconductor business, which is her main source of income. Recall that the decision to sell was prompted by the need to cover losses from the activities of the American division of Toshiba in the field of nuclear energy.