“Toshiba is selling its prized memory chip business for $18 billion to a group of buyers that includes Apple,” Sherisse Pham reports for CNN. “The Japanese conglomerate is offloading major assets to try to deal with a crippling financial crisis. The memory chip business is its crown jewel, which has attracted interest from major tech companies like Taiwan’s Foxconn.”

“But after a messy, months-long bidding process, Toshiba has picked a consortium led by U.S. private equity firm Bain Capital and backed financially by Apple, Dell and other U.S. and Japanese firms,” Pham reports. “It wasn’t immediately clear how much of the 2 trillion yen ($18 billion) will come from Apple, which uses memory chips for iPhones, tablets and other devices. Multiple reports suggested its stake in the bid would be significant, but the company declined to comment.”

“Other U.S. tech companies putting money into the deal include flash memory product maker Kingston and data storage firm Seagate, according to Bain,” Pham reports. “The agreement may not be the end of the saga, however. The Bain group fended off a challenge from U.S. data storage firm Western Digital, whose subsidiary SanDisk has a joint venture with Toshiba. But Western Digital is still trying to block the deal. SanDisk filed new proceedings against Toshiba in international courts Wednesday, calling the deal a “retaliatory breach” of the joint venture agreement.”

Read more in the full article here.

MacDailyNews Take: Once the sour grapes SanDisk challenge is dispatched, this’ll be a done deal.

Reportedly, Apple wil be in for around $3 billion, making this one of Apple largest deals ever, if not the largest. (Apple’s largest acquisition to date was the purchase of Beats Electronics for US$3 billion in a cash and stock on August 1, 2014).

SEE ALSO:
Toshiba decides on Bain Capital-Apple Group in chip business sale – September 20, 2017
If Bain Capital bid for Toshiba succeeds, it could be Apple’s largest deal ever – September 14, 2017
Apple mounts a full-court press for Toshiba’s chip business, waging battle with Western Digital – September 8, 2017
Foxconn details plan to acquire Toshiba chips unit; Apple would own 20 percent – September 7, 2017
Bain Capital brings in Apple for last-minute $18 billion bid for Toshiba chip unit – August 30, 2017
Apple and Amazon to back Foxconn on Toshiba chip bid, Hon Hai Chairman Terry Gou says – June 5, 2017
Apple may bid for big stake in Toshiba – April 17, 2017
U.S. suitors get major advantage as Japan to vet bidders in Toshiba chip sale over national security risks – March 10, 2017