Chinese Firm Ends Investment in Western Digital, Complicating SanDisk Tie-Up

"Western Digital Corp. said a Chinese company backed out of a $3.78 billion deal to invest in the disk drive maker, citing a decision by U.S. authorities to investigate the transaction on national security grounds.

Besides acquiring a minority stake in Western Digital, the Chinese investors would have been entitled to an observer on that company’s board. The terms fall within typical standards for a review, said Mario Mancuso, a former CFIUS official and partner at law firm Kirkland & Ellis LLP in Washington."

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This article appeared in its entirety in the February 23, 2016 edition of The Wall Street Journal.