Toshiba settles with Western Digital, clearing path for Bain-Apple acquisition
Toshiba Corp. and Western Digital Corp. officially settled litigation Tuesday that should clear a path for a long-planned sales of Toshiba's flash-memory unit. Toshiba has agreed to sell the business to a consortium led by private-equity firm Bain Capital, which includes Apple Inc. , Dell Technologies Inc., Seagate Technology PLC and others. Western Digital made its own bid for the assets, and eventually sued Toshiba based on joint-manufacturing agreements. Western Digital confirmed reports earlier in the day of a settlement with a filing Tuesday afternoon that breaks down the revised agreement for new manufacturing facilities. Toshiba is seeking to sell its profitable flash-memory unit as part of an effort to avoid having its stock delisted in Japan due to struggles at its U.S. nuclear subsidiary, Westinghouse. Western Digital shares increased more than 2% in after-hours trading Tuesday.
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