China regulators open antitrust probe of Toshiba deal: newspaper

Reuters 

(Reuters) - Chinese regulators have opened an investigation into Corp's <6502.T> $18 billion deal to sell its memory chip unit to a consortium led by Bain Capital LP that includes memory maker SK Hynix <000660.KS>, possibly delaying the March closing date Toshiba's leaders have targeted, the Asian Review newspaper reported on Friday.

Chinese regulators started their review earlier this month, despite the fact that had applied for it in September, when it reached a deal with Bain and its partners, the newspaper said.

Such reviews in typically take about four months but sometimes stretch to six, making it unclear whether can hit its March 2018 target for closing the deal, the paper said.

A U.S.-based spokeswoman for was not immediately able to comment on the report.

is racing against the clock to complete the deal because it needs to bolster its balance sheet before March to avoid potentially being delisted from the Tokyo Stock Exchange. A delisting would be a major blow for one of Japan's largest and oldest industrial companies. [nL3N1NQ01U]

The deal has already secured regulatory approval in the United States and Japan but still needs approval in China, Taiwan and South Korea, the Asian Review said.

reached the deal with Bain and its partners after a protracted legal fight with Western Digital Corp , which had a joint venture with around memory chips and objected to the deal's inclusion of SK Hynix. and Western Digital settled their differences earlier this week, but shareholder and regulatory complications remain before can close the deal. [nL3N1OC5AK]

(Reporting by Stephen Nellis in San Francisco; Editing by Jonathan Oatis)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, December 15 2017. 05:23 IST