Chinese company UniSplendor has made it public that it is going to invest $3.8 billion in California based Western Digital to strengthen latter’s balance sheet. UniSplendor, a business unit of Tsinghua Unigroup is the same company which in July this year made into news headlines for buying flash maker Micron Technology.
While Micron said that it had not received a formal bid, Tsinghua Unigroup’s Chairman has further stoked speculation by revealing to the media that the deal was being secretly reviewed by few board members of Micron.
Unigroup’s investment in Western Digital Company can be termed as a long term investment which will serve as a constructive collaboration model for Chinese and US Companies.
Currently, the investment is being reviewed by Committee on Foreign Investment of USA (CFIUS). The deal is said to get a positive voting soon to strengthen Sino-US Relations.
Last week, President Barack Obama’s administration accused China hackers of cyber theft, including a recent intrusion into US government personnel files. In-turn, the Chinese government maintains that it is a victim, rather than perpetrator of hacking, pointing to revelations by Edward Snowden, the former US NSA contractor.
Amidst, this tension, it is good to know that a Chinese firm is showing interest in investing in a US company.
After the announcement of fresh investment, WD shares jumped more than 15% to $79.44 USD.
Now, that’s great news indeed!