China State Tsinghua Unigroup Ltd prepares buyout of American Micron Technology

The Wall Street Journal, citing its own sources, reports that the Chinese state-owned company Tsinghua Unigroup has prepared a proposal to buy out the legendary American semiconductor manufacturer Micron Technology. The publication adds that the Chinese side is ready to pay $ 21 per share, which is almost 20% higher than the value of the company's securities as of the close of trading on Monday.

The amount of the possible transaction is $ 23 billion, which can put the transaction in first place in the world, historically.

The sources of the publication report that the Chinese company, which is part of Tsinghua Unigroup Ltd, has already sent a redemption offer to the American side, however, as the representative of Micron commented on the possible deal, the company did not receive any notifications.

Experts say that the attempt of Tsinghua Unigroup to acquire Micron speaks primarily of China’s desire to strengthen its position in the semiconductor market, which is necessary not only for the production of smartphones and consumer equipment, but also in the defense industry. China does not have any key technology for creating storage devices, due to the lack of its own intellectual base (first of all, patents).
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Whether the US government will go for such a deal, and it must be approved not only by the Securities Commission (SEC) but also by the Foreign Investment Committee - is unknown. It is possible that in the ruling circles may decide that such a takeover threatens the national security of the United States.