The US Foreign Investment Committee has approved SK Hynix’s acquisition of Intel’s Chinese solid-state memory business. The agreement was reached under the former CEO, Robert Swan, after the completion of the deal, it will allow Intel to bail out $ 9 billion.
The US Federal Trade Commission has also approved the upcoming deal, now the South Korean company SK Hynix has to obtain approvals from the competent authorities in other interested countries, including the UK and China. For the Korean memory maker, the deal will be an opportunity to take second place in the world after Samsung and expand its lead over its Chinese competitors.
The Korean company will gain control over the Intel enterprise in Dalian only by the end of this year. The first phase of the transaction involves the payment of $ 7 billion, and the remaining $ 2 billion will need to be paid by March 2025. According to TrendForce data for the fourth quarter of 2020, Samsung controlled 32.9% of the solid-state memory market, SK Hynix was content with 11.6%, and Intel’s share did not exceed 8.6%. Obviously, the deal with Intel will allow SK Hynix to increase its stake to 20%. The Korean manufacturer expects to triple its solid-state memory revenue over the next five years. SK Hynix will pay half of the amount in cash, the remaining funds will be raised in the debt market.
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