TOKYO: Japan’s Toshiba Corp. is locked in last minute discussions over “key issues” with the would-be buyers of its $18 billion (SR67.5 billion) memory chip business led by US private equity firm Bain, potentially delaying a formal agreement on the sale.
Toshiba said on Wednesday it had agreed to sell the prized unit to the Bain consortium, and had been expected to formalize the sale on Thursday.
Instead, South Korea’s SK Hynix, part of the winning consortium, said talks were still ongoing. Sources familiar with the matter confirmed consortium members were still wrangling over details of their agreement and said commitment letters from all participants were still needed before the sale could be signed formally.
“There are some key issues still to be agreed upon in the content approved by Toshiba’s board,” the South Korean chipmaker said in a statement, adding that it would continue talks.
Toshiba and Bain did not immediately reply to a request for comment.
Adding to uncertainty, jilted suitor and Toshiba joint venture partner Western Digital took fresh legal action overnight, filing new arbitration requests to stop Toshiba investing in a new flash memory production line without its help.
Shares in Toshiba reflected the concerns, falling more than 2 percent in late afternoon trade.
Struggling to plug a yawning balance sheet hole after a cost blowout at its now-bankrupt US nuclear business, Toshiba has been trying to sell its chip business since late January.
Agreeing the sale of the world’s second-largest producer of NAND flash memory chips brings the group closer to the end of a tangled and fraught process.
As late as Tuesday night, sources said Toshiba was leaning toward selling the business to Western Digital.
Bain has partnered with SK Hynix and brought in deep-pocketed US buyers of Toshiba chips such as Apple and Dell to bolster its bid.
But there are major unknowns, including the outcome of antitrust investigations and the battle with Western Digital.
It is unclear how long that process could last, and what impact it would have on the completion of the sale.
Industry watchers also said SK Hynix’s participation could prolong antitrust reviews, particularly in China, as Beijing is trying to grow domestic players. The South Korean chipmaker plans to limit its role to financing, but it’s unclear if it hopes to gain a stake in the future.
“It’s clear to everyone that this Bain deal will have difficulty succeeding,” said Akira Minamikawa, principal analyst at IHS Markit.
The NAND flash memory chips business faces fierce price competition with Samsung Electronics, he said, and China was likely to join the race.
“To survive, Toshiba needs to shift its focus to (flash memory-backed) storage systems for servers rather than selling memory chips alone. And strong players there are Samsung and Western Digital, not (new partner) SK Hynix.”
Toshiba, keen to seal $18 billion chips sale, wrestles with last-minute delays
Toshiba, keen to seal $18 billion chips sale, wrestles with last-minute delays
Acwa signs key terms to develop 5GW of renewable energy capacity in Turkiye
JEDDAH: Saudi utility giant Acwa has signed key investment agreements with Turkiye’s Ministry of Energy and Natural Resources to develop up to 5 gigawatts of renewable energy capacity, starting with 2GW of solar power across two plants in Sivas and Taseli.
Under the investment agreement, Acwa will develop, finance, and construct, as well as commission and operate both facilities, according to a press release.
The program builds on the company’s first investment in Turkiye, the 927-megawatt Kirikkale Independent Power Plant, valued at $930 million, which offsets approximately 1.8 million tonnes of carbon dioxide annually, the statement added.
A separate power purchase agreement has been concluded with Elektrik Uretim Anonim Sirketi for the sale of electricity generated by each facility.
Turkiye aims to boost solar and wind capacity to 120GW by 2035, supported by around $80 billion in investment, while recent projects have already helped prevent 12.5 million tonnes of CO2 emissions and reduced reliance on imported natural gas.
Turkiye’s energy sector has undergone a rapid transformation in recent years, with renewable power emerging as a central pillar of its strategy.
Raad Al-Saady, vice chairman and managing director of ACWA, said: “The signing of the IA (implementation agreement) and PPA key terms marks a pivotal moment in Acwa’s partnership with Turkiye, reflecting the country’s strong potential as a clean energy leader and manufacturing powerhouse.”
He added: “Building on our long-standing presence, including the 927MW Kirikkale Power Plant commissioned in 2017, this step elevates our partnership to a new level,” Al-Saady said.
In its statement, Acwa said the 5GW renewable energy program will deliver electricity at fixed prices, enhancing predictability for grid planning and supporting long-term industrial investment.
By replacing imported fossil fuels with domestically generated clean energy, the initiative is expected to reduce Turkiye’s exposure to global energy market volatility, strengthening energy security and lowering long-term power costs.
The company added that the economic impact will extend beyond the anticipated investment of up to $5 billion in foreign direct investment, with thousands of jobs expected during the construction phase and hundreds of high-skilled roles created during operations.
The energy firm concluded that its existing progress in Turkiye reflects a strong appreciation for Turkish engineering, construction, and manufacturing capacity, adding that localization has been a strategic priority, and it has already achieved 100 percent local employment at its developments in the country.
