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Bain Capital-lead consortium, including Apple, Dell and Seagate, acquires the chip business of Toshiba

Toshiba chip businessBain Capital-lead consortium, including Apple, Dell and Seagate will acquire the chip business of Toshiba for more than 18 billion USD. The deal for acquisition of the NAND memory-chip manufacturing unit is expected to be officially announced on Wednesday in Japan. The consortium of three technology giants, lead by the private equity company Bain Capital will takes control of Toshiba’s chip operations.

Representatives for Apple and the other US firms could not be immediately reached for comment outside of regular business hours.

Toshiba said in a statement it had signed a memorandum of understanding with Bain to accelerate discussions, and hoped to reach agreement in late September. But it added that the memorandum was not legally binding and did not prevent it from negotiating with other parties.

Toshiba is rushing to find a buyer for the world’s second-largest producer of NAND chips, which it values at 18 billion USD or more, to cover billions of dollars in cost overruns at its now-bankrupt US nuclear business Westinghouse Electric Corp.

Earlier, the Japanese technology company almost agreed the sale with Western Digital. Other potential suitors include Taiwan’s Hon Hai Precision (Foxconn), but it faced an uphill battle as the Japanese government would prefer to choose a bidder with fewer ties to China.