ARN

FTC seeks more data on Intel flash spinoff

Antitrust regulators in the US asked Intel and STMicroelectronics for further data on their planned flash spinoff.

US government antitrust regulators have asked Intel and STMicroelectronics NV to provide more information about their plan to spin off their flash memory unit into a new company, the vendors said Thursday.

The US Federal Trade Commission made the request as part of its regulatory review in an effort to ensure the deal does not violate antitrust laws, according to Intel. If FTC investigators approve the terms, Intel and ST will be able to close the deal after a 30-day waiting period, the company said.

"These kinds of transactions are reviewed by the FTC and it's not unusual for them to come back and ask for more information," said Intel spokesman Tom Beermann. Intel plans to comply with the request, but gave no deadline for providing the new information.

"As part of the regulatory review, they do look at antitrust issues. This is a fairly complicated deal because there are three partners and there are different types of technology, and it is a fairly large deal," Beermann said.

Intel and STMicroelectronics will share ownership of the new semiconductor business with ST holding a 48.6 percent stake, Intel owning 45.1 percent and private equity firm Francisco Partners LP holding 6.3 percent. The new company will be based in Switzerland and incorporated in the Netherlands. It will compete against flash vendors including Samsung Electronics Co., Toshiba and Spansion Intel's main chip rival AMD spun off its flash unit in December 2005 to create Spansion.

Intel and ST announced plans for the new business in May and expect it to employ about 8,000 staff. They will make NOR and NAND-type flash chips, which are typically used for storing data in consumer and industrial products such as cell phones, MP3 music players and digital cameras.

Intel has struggled for years to make a profit from its flash business, and earlier in May said it would lay off as many as 1,000 workers when it closed an outdated flash plant in New Mexico.

A spokeswoman for ST said the company also planned to comply with the FTC request, but would not confirm whether it was related to antitrust concerns.

"We will provide all the information they need. The FTC needs it by the second half of 2007," said ST spokeswoman Carol Brown. "This is just part of the approval process."

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

More about: AMD, Federal Trade Commission, Francisco Partners, FTC, Intel, LP, Samsung, Samsung Electronics, STMicroelectronics, Toshiba, US Federal Trade Commission

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
Users posting comments agree to the ARN comments policy.
Login or register to link comments to your user profile, or you may also post a comment without being logged in.
Related Whitepapers
Latest Stories
Community Comments
ARN Directory | Distributors relevant to this article
Alloys , Aquion , ASI Solutions , Australasian PC Distributors (APCD) , Avnet Technology Solutions , Brightpoint Australia , Compucon Computers , Dicker Data , ICT Distribution , Impact Systems Technology , Leader Computers , Multimedia Technology , Synnex Australia , Topstar Computer International , XiT Distribution , Xpress I.T. , Dynamic Supplies , Toshiba TEC Australia
rhs_login_lockGet exclusive access to ARN's news, research and invitation only events.
ARN Distributor Directory
Find distributors by name | vendor | location
Channel Deals
/deals/avg/2011-02-25_368_avg-wants-you
AVG (AU/NZ) Pty Ltd

AVG Wants You!

More details »
ARN Vendor Directory
Find vendors by name | category

iAsset is a channel management ecosystem that automates all major aspects of the entire sales,marketing and service process, including data tracking, integrated learning, knowledge management and product lifecycle management.