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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.
SNDK 200.32+2.2%Nov 21 9:30 AM EST
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To: Unwelcomeguest who wrote (3635)4/24/2018 12:49:30 PM
From: Art Bechhoefer1 Recommendation  Read Replies (1) of 4828
 
There is probably another more cogent explanation for China's rejection of Toshiba's proposal. Although, as you note, "Chinese regulators want the consortium to provide more remedies to protect Chinese companies before approving the plan," the underlying reason may be that Chinese regulators actually want Toshiba's portion of the joint venture.

You may recall that when WDC first made an offer to buy SanDisk, it came with a promise of $4 billion help from Tsinghua Unigroup, which included Chinese state owned funds. Subsequently, the Chinese bowed out of the deal, resulting in SNDK shareholders getting a little less for their stock than would have been the case with Chinese participation.

The latest development, with Chinese regulators opposing Toshiba's plans, can be summed up in one sentence: They want access to Toshiba's (and mostly SanDisk's, now WDC's) proprietary technology on NAND flash of all flavors, including 3D. This technology is especially valuable because it gives WDC and Toshiba the highest margins in the industry, so it must be somewhat better than what Samsung and Hynix are using, and better than Micron's technology as well.

If you have a better reason, let me know.

Art
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