Toshiba Corp. and Western Digital Corp. ended a months-long legal spat that had threatened to derail the $18 billion sale of Toshiba's flash-memory business and cut the USA company off from a future supply of vital new products.
The agreement now struck between TMC, Toshiba, and Western Digital will see all pending litigation and arbitration actions withdrawn; in addition, TMC and Western Digital have agreed to jointly invest in a new memory fabrication facility in Yokkaichi, followed by a flash wafer fabrication facility in Iwate.
TMC's President and Chief Executive, Dr. Yasuo Naruke said that the company is "pleased to have reached this outcome, which clearly benefits all involved".
Accordingly, Toshiba Corporation, Toshiba Memory Corporation and Western Digital Corporation have entered into a global agreement to settle their ongoing disputes in litigation and arbitration. In return, the Japanese company will end its legal claims against Western Digital, the two companies said in a statement.
"We are very pleased that these agreements accomplish these critical goals, allow Toshiba to achieve its objectives, and also enable us to continue delivering on the power of our platform", Milligan said. -South Korean group led by USA fund Bain Capital. Demand for the memory chips to be produced at the new factory is strong overseas. Western Digital is clearly a loser here because it was strongly opposed to that sale, as the consortium also includes two of its biggest rivals, USA firm Seagate Technology Plc. and South Korean company SK Hynix Inc., which will now obtain some of WD's production assets via the joint venture agreements. To maintain solvency, Toshiba was forced to offer up a share of its NAND flash memory business, by far the most lucrative portion of Toshiba's conglomerate.
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TMC and Western Digital have also agreed to extend the terms of their joint ventures (JVs).
Toshiba said it still expects the sale to Pangea to be completed by the end of March 2018. Toshiba is inundated with losses related to its US nuclear operations at Westinghouse Electric Co., which filed for bankruptcy earlier this year. The company also faced criticism over bookkeeping and corporate governance issues.
In the meantime, it has struggled to avoid being delisted.
The settlement includes an acceptance by Western Digital of the sale of Toshiba Memory Corporation to the Bain-led consortium - a move that Western Digital claimed contravened the two companies' joint venture agreements.