Chinese Unisplendour buys 15% of Western Digital for $ 3.8 billion, despite difficult relations with the US
On Thursday, October 2, Western Digital computer maker announced that the Chinese company Unisplendour is buying its additional shares at a price of $ 92.50. This is almost a third higher than their market value recorded on Tuesday. At this price, Western Digital's valuation exceeds $ 25 billion. Western Digital is one of the world's leading manufacturers of hard drives.
A few days ago, the leaders of the United States and China began negotiations on a joint solution to the problems of electronic espionage and other issues related to the IT sector.
Viktor Zhao, CEO of Tsinghua Holding (in control of Unisplendour), considers the deal with Western Digital an example for further development of the US-China business relationship: "We are confident that this long-term investment will become an example of constructive cooperation between companies from China and the US." Under the terms of the agreement, Unisplendour receives one seat on the Western Digital board of directors, but with a restriction of voting rights.
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In July, Tsinghua Unigroup, controlled by the Chinese government, announced its intention to buy US chip maker Micron Technology for $ 23 billion. However, the situation has not progressed so far. But if everything works out with Western Digital, the holding can continue what has been started.
Revenues from the issue of shares will help to improve the company's balance sheet and will allow the development of “long-term strategic development programs,” explains Western Digital. Western Digital shares after the announcement of the deal went up by more than 15% - to $ 79.44.
The transaction must pass a mandatory examination in the US Foreign Investment Committee (CFIUS). Given the still complex relationship between the US and China, the committee may not approve the deal. However, earlier CFIUS rarely prevented Chinese investors, Vedomosti reports, citing the Financial Times.
The administration of Barack Obama has repeatedly suspected that Chinese hackers were stealing information from the United States.
The Chinese government claims that it has nothing to do with hacker attacks, but is only their victim. In addition, the Chinese authorities are reminded of the story with the former contractor of the US National Security Agency Edward Snowden.
The Chinese authorities intend to demand that all products of the IT sector, supplied to Chinese banks, be “safe and controlled.” US government and trading circles are categorically against it. After all, then you have to provide customers with source codes of programs and other confidential information. Earlier this year, the Chinese Banking Regulatory Commission, together with the Ministry of Industry and Information Technology, decided to postpone the introduction of these rules.
A few days ago, the leaders of the United States and China began negotiations on a joint solution to the problems of electronic espionage and other issues related to the IT sector.
Viktor Zhao, CEO of Tsinghua Holding (in control of Unisplendour), considers the deal with Western Digital an example for further development of the US-China business relationship: "We are confident that this long-term investment will become an example of constructive cooperation between companies from China and the US." Under the terms of the agreement, Unisplendour receives one seat on the Western Digital board of directors, but with a restriction of voting rights.
')
In July, Tsinghua Unigroup, controlled by the Chinese government, announced its intention to buy US chip maker Micron Technology for $ 23 billion. However, the situation has not progressed so far. But if everything works out with Western Digital, the holding can continue what has been started.
Revenues from the issue of shares will help to improve the company's balance sheet and will allow the development of “long-term strategic development programs,” explains Western Digital. Western Digital shares after the announcement of the deal went up by more than 15% - to $ 79.44.
The transaction must pass a mandatory examination in the US Foreign Investment Committee (CFIUS). Given the still complex relationship between the US and China, the committee may not approve the deal. However, earlier CFIUS rarely prevented Chinese investors, Vedomosti reports, citing the Financial Times.
The administration of Barack Obama has repeatedly suspected that Chinese hackers were stealing information from the United States.
The Chinese government claims that it has nothing to do with hacker attacks, but is only their victim. In addition, the Chinese authorities are reminded of the story with the former contractor of the US National Security Agency Edward Snowden.
The Chinese authorities intend to demand that all products of the IT sector, supplied to Chinese banks, be “safe and controlled.” US government and trading circles are categorically against it. After all, then you have to provide customers with source codes of programs and other confidential information. Earlier this year, the Chinese Banking Regulatory Commission, together with the Ministry of Industry and Information Technology, decided to postpone the introduction of these rules.
Source: https://habr.com/ru/post/295020/
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