Government-Backed Banks Considering Bid for Toshiba

Reuters has just reported that the Japan Investment Corporation and Norinchukin Bank are considering buying Toshiba Corporation of Tokyo, Japan, according to the Nikkan Kogyo Shimbun.

Acquisition of Toshiba by such Japanese funds would likely be easier to get government regulatory approval. That’s because some of Toshiba’s sensitive technology, such as nuclear technology and defense systems, requires that Japanese regulators scrutinize any potential acquisition by foreign funds.

Currently, private-equity fund CVC Capital Partners has submitted a $20 billion bid, which would take Toshiba private, and which Toshiba is now considering. Various Toshiba investors, however, have expressed concern that the bid is too low.  The Toshiba Chairman of the Board has also criticized CVC’s offer as “lacking in substance.” KKR & Co. and Brookfield are also said to be considering making acquisition bids, while CVC is said to be partnering with Bain Capital in its acquisition bid.

This week also marked the resignation of Toshiba CEO Nobuaki Kurumatani.

More Resources

• April 2021: Toshiba CEO Steps Down
• April 2021: Toshiba Cautious of Proposed CVC Acuisition Bid