Out-Law News

Chinese Tsinghua Unigroup bids to buy US chip maker Micron

Tsinghua Unigroup, the investment arm of China’s Tsinghua University, has put together a bid worth $23 billion for US memory chip maker Micron Technology in what would be the largest Chinese takeover of a US firm, the Wall Street Journal said . 

Citing people familiar with the matter, the Wall Street Journal said that Tsinghua Unigroup is willing to pay $21 a share for Micron, whose share price has fallen by nearly half in the past year. The offer would be a 19.3% premium on Monday's closing price for the shares

Tsinghua Unigroup has outlined its offer in a letter to Micron, the Wall Street Journal's source said.

Micron has made no comment to date on the reported offer.

The chip maker was involved in an EU cartel investigation in 2010. Nine companies were fined a total of €331 million by the European Commission under a fast-track scheme set up to deal with cartels. Micron was not fined because it had blown the whistle on the illegal activity.

Hewlett-Packard sold the majority of its Chinese networking business to Tsinghua University in May.

Tsinghua agreed to pay $2.3bn for HP's China-based server, storage and technology services business, and would combine these with its own H3C Technologies to create a new business called H3C, HP said.

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