Broadcom will be granted exclusive negotiating rights to acquire Toshiba's semiconductor business, sources familiar with the matter told Japanese paper Asahi Shimbun. Broadcom has teamed up with investment firm Silver Lake for the bid, which is thought to be worth JPY 2.2 trillion (USD 20 billion).
Broadcom also proposed subsequent investments in the activities, in its offer filed in the second round of bidding completed last month. According to the report, four bidders participated in that round. Broadcom is expected to be favoured for its complementary product offering with Toshiba Memory and little overlap in their activities, meaning regulatory scrutiny should not prove a barrier to completing quickly the sale.
Toshiba started the final stage of negotiations with Broadcom early this month and is expected to grant it exclusive rights by mid-June, the report said. One obstacle to the sale to Broadcom may be the lawsuit filed by Toshiba's partner Western Digital last month in an attempt to halt the sale. Western Digital argued that such a move would break its business contract with the Japanese company, and it may be opposed to rival Broadcom acquiring the business. Toshiba hopes that Broadcom and Western Digital will negotiate with each other to settle the matter, the report said.
