Intel's Sale of Chip Business to SK Hynix Clears Final Regulatory Hurdle
22 Dezember 2021 - 11:55AM
Dow Jones News
By Yang Jie
Intel Corp. has received the green light from China's antitrust
regulator for the $9 billion sale of its flash-memory chip business
to South Korea's SK Hynix Inc., clearing the last hurdle for the
deal.
The deal will rid the U.S. chip giant of a business unit that
has historical importance but has become increasingly challenged in
recent years.
The two companies reached the deal more than a year ago and it
has now received approval in eight jurisdictions, SK Hynix said in
a statement Wednesday. That means it has gotten all the necessary
approvals from competition authorities.
Chinese antitrust regulators play an increasingly important role
in approving deals between multinational corporations.
The deal will tighten Intel's focus on memory chips using more
advanced technology and help SK Hynix, the world's second-largest
memory-chip maker after Samsung Electronics Co., better compete
against its rivals.
The deal includes an Intel factory in Dalian, China. SK Hynix
said the main part of the transaction, involving a payment of $7
billion, would close by the end of the year. The remaining $2
billion payment is expected to be made by March 2025.
China's State Administration for Market Regulation said in a
statement Wednesday that SK Hynix had agreed to several commitments
relating to its future sales to Chinese customers. The conditions,
which will last for five years, require the company to further
expand its production quantity and limit its ability to raise
prices for certain products. SK Hynix must sell to Chinese
customers on fair, reasonable and nondiscriminatory terms, the
regulator said.
An SK Hynix spokesperson said there had been speculation that
the approval could be delayed significantly amid tensions between
the U.S. and China over semiconductors. He said the company's
efforts to persuade the Chinese authorities paid off.
Write to Yang Jie at jie.yang@wsj.com
(END) Dow Jones Newswires
December 22, 2021 05:40 ET (10:40 GMT)
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