After five months of negotiating, Micron Technology has announced it intends to purchase Hynix’s memory business in exchange for approximately 108.6 million shares of Micron common stock, worth just more than $3.8 billion. Micron will also invest $200 million in Hynix in return for a 15% equity stake in Hynix’s continuing non-memory businesses.
As part of the transaction, Korean lenders will provide $1.5 billion USD of long-term debt financing for use by Micron in its Korea-based operations.
Steve Appleton, President and CEO of Micron, stated, We appreciate the dedication and commitment by all parties in completing this MOU. Although there remain additional details to be negotiated before a definitive agreement can be achieved, we’re confident the outstanding resources of Hynix combined with Micron’s operational capabilities will create a leading semiconductor company that will benefit its employees, shareholders, affiliates and worldwide customers.
Micron has also closed a $296 million deal to buy Toshiba’s dynamic random access memory (DRAM) operations. When combined with the Hynix purchase, the deals will make Micron the largest player in the DRAM market, leapfrogging Samsung Electronics Co.