The European regulator studied the details and approved the transaction between the SK Hynix and Intel companies, in which the first intends for $ 9 billion to acquire the Intel plant used to produce NAND memory chips. This was reported to Bloomberg Edition.
The European Commission made a statement on this Friday, which indicated that it approves an agreement between the two companies. According to the publication, earlier SK Hynix received the approval of the transaction from American regulators, and now expects to decide British and Chinese. Thanks to this agreement, the South Korean company will be able to become the second after Samsung by the largest manufacturer of NAND flash memory chips in the world, and Intel, in turn, will receive additional funds for the development of logical microcircuits.
The transaction is assumed in two stages. During the first SK Hynix, I will pay intel $ 7 billion. By the end of this year, the American company will transfer to the South Korean manufacturer to the NAND and SSD flash memory chip chips in the Chinese city of Dalian, which will increase the share of SK Hynix in the world market of manufacturers of NAND flash memory chips up to more than 20%. The deal is supposed to be closed in 2025, when SK Hynix will pay the remaining $ 2 billion for the remaining Intel assets, including the NAND flash memory chips and design departments.
At the end of 2020, the total share of SK Hynix and Intel in the global market for the production of NAND flash memory chips was about 20% (11.6 percent of SK Hynix and 8.6% in Intel). According to the research firm Trendforce, Samsung, in turn, belonged to 32.9% of the market.
Back in November last year, the executive director Sk Hynix said that thanks to this deal, the company hopes for five years to triple the revenue from the production and supply of NAND flash chips. “The proposed merger will help SK Hynix to expand its presence in the global market and will add new memory production technologies to our portfolio. The company hopes to expand his experience at the expense of this transaction, “he noted in his statement.