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Micron-Elpida merger passes U.S. antitrust review

Posted: 13 Sep 2012 ?? ?Print Version ?Bookmark and Share

Keywords:DRAM? antitrust review? regulatory approval?

Micron Technology has announced that it received U.S. regulatory approval to buy out Elpida Memory for $2.5 billion after no issue was raised upon expiration of the waiting period of the antitrust review.

Micron said the transaction-first announced in July (See Elpida & Micron merger nearing completion.) -remains subject to other conditions and regulatory approvals from Japan and other countries. Micron expects to complete the deal in the first half of 2013.

One group of Elpida's bondholders continues to oppose the transaction, saying it undervalues company assets. Back in August, Elpida submitted a restructuring plan to the Tokyo District Court advancing Micron's bid in hopes of preventing total liquidation of the company. (See Elpida's revival plan in favor of Micron offer.)

According to market research firm IHS iSuppli, acquiring Elpida is risky although Micron will come out of it as a significantly bigger player in the DRAM industry with more than double its original manufacturing capacity. (See Boon and burden for Micron's Elpida buy.)

Elpida, once a leading DRAM maker, was established in 1999 when NEC and Hitachi merged their memory businesses. The company faced a series of losses in the previous years, culminating in the first quarter of 2012 when it filed for bankruptcy and was delisted from the Tokyo Stock Exchange last March 28. Reports placed Elpida's liabilities at around $5.5 billion. (See Elpida bailout denied, firm files bankruptcy.)

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