Toshiba and Western Digital reach compromise in legal dispute
The US company will drop its arbitration claims aimed at stopping the $18bn sale of the chip business
Tokyo/San Francisco — Toshiba and Western Digital have agreed in principle to settle their legal dispute over the $18bn sale of Toshiba’s flash-memory business — with a formal announcement expected within the next 24 hours, according to people familiar with the matter. The US company will drop arbitration claims in the US that were aimed at stopping Toshiba from selling the chip business to a consortium led by Bain Capital, while the Japanese company will end its legal claims against Western Digital, said the people, asking not to be identified because the matter is private. As part of the settlement, Western Digital will be able to invest alongside Toshiba in a cutting-edge chip plant in Japan and receive a guaranteed supply of next-generation memory chips, they said. The partners have been locked in a legal battle since early this year after Toshiba said it would sell the chip business to pay for enormous losses in its US nuclear business. The US company had argued Toshiba needed ...
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