China Launches Antitrust Review of Toshiba's Sale of Chip Business

Friday reported that Chinese regulators have begun antitrust scrutiny of Toshiba (6502.T) 's sale of memory chips business, which could make it difficult for the transaction to be completed by the end of March next year by Toshiba executives.

Toshiba will sell its chip business for $ 18bn to Bain Capital's consortium, which includes memory (memory) maker SK Hynix (000660.KS).

The Nikkei Asia Review said Chinese regulators began censorship earlier this month, although Toshiba filed a review after it reached a deal to sell chips in September. (s.nikkei.com/2o31P4B)

 
The paper said that this review usually takes about four months in China, but sometimes up to six months, it is unclear whether Toshiba can achieve the goal of completing the transaction by the end of March 2018.

A spokesman for Toshiba did not immediately comment on the report.

Toshiba is trying to complete the transaction as soon as possible, because it needs to improve its balance sheet by March to avoid delisting by the Tokyo Stock Exchange. Toshiba is one of Japan's oldest and oldest industrial companies, delisting will be a major blow to it.