Bain Capital pledges support for further Toshiba chip acquisitions
Bain Capital, the leader of a successful bid by a consortium of investors to acquire Toshiba's chip business, says it will support the firm's future purchases in the memory industry.
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Speaking at a conference following the completion of the $18 billion deal, Yuji Sugimoto, head of Bain Capital in Japan, said: "I believe our financing power will enable Toshiba Memory to engage in large-scale M&A deals."
Last week, Bain Capital's consortium and Toshiba announced the completion of the buyout.
Despite delays caused by Chinese antitrust regulators in the midst of a battle between the US and China on trade deals, the acquisition is now wrapped up. Investors including Apple, SK Hynix, Dell, and Seagate Technology now own portions of the lucrative unit.
Toshiba was able to repurchase 40 percent of the memory chip business under the terms of the sale, and the memory business is expected to become an affiliate in the future.
As reported by Reuters, Toshiba Memory president Yasuo Naruke said that Toshiba Memory will need a variety of technologies in relation to next-generation memory chips in the future to secure the company's long-term prospects.
As a result, a meeting will take place between Bain Capital and Naruke to decide on the company's future, as well as ascertain what kinds of technology or strategic purchases could help the business moving forward.
See also: Toshiba wraps up sale of memory chip business to Bain Capital consortium
Toshiba was forced to put the unit up for sale to the highest bidder following the acquisition of US nuclear division Westinghouse Electric.
The buyout proved to be an error on the Japanese tech giant's part, as project delays eventually forced Westinghouse to file for bankruptcy protection.
Toshiba was left to pick up the pieces and report a $6.3 billion write-down following the unit's failure.