On January 7, Jiangsu Changjiang Electronics Technology Co., Ltd. (JCET) announced that its proposal to acquire an 80% equity stake in SanDisk Semiconductor (Shanghai) Co., Ltd. has been approved by the relevant authorities.

The approval came through a Notice of Non-Prohibition of Anti-Monopoly Review of Concentration of Business Operators issued by the State Administration for Market Regulation and the Planning and Natural Resources Bureau of Minhang District, Shanghai.

Acquisition Process

On March 4, 2024, JCET's wholly-owned subsidiary, JCET Management Co., Ltd., entered into an Equity Acquisition Agreement with Western Digital's subsidiary, SANDISK CHINA LIMITED, proposing to acquire an 80% equity stake in SanDisk Semiconductor under SANDISK CHINA LIMITED (SCL) for $624 million (approximately RMB 4.5 billion, subject to potential adjustments in the actual transaction amount).

In September 2024, the target company completed the necessary industrial and commercial registration changes, becoming an indirect subsidiary of JCET. By the end of the month, JCET had made the initial acquisition payment of $262.19 million.

On January 8, 2025, JCET issued an announcement stating that, pursuant to the Amended and Restated Equity Transfer Agreement, both parties had completed the confirmation of the audit results of the target company's delivery and adjusted the transaction consideration post-delivery based on the target company's situation. The final acquisition consideration was determined to be $659.1 million (approximately RMB 4.83 billion), representing an increase of approximately $35 million compared to the consideration agreed upon last year.

On January 6, 2025, JCET made the second acquisition payment of $209.73 million.

Upon completion of this transaction, JCET will hold an 80% equity stake in the target company, while SCL will retain a 20% equity stake. SCL and its parent company, Western Digital, will continue to be the primary or sole customer of SanDisk Semiconductor for a specified period, ensuring its business performance and aiding JCET in enhancing its core competitiveness in the storage and computing electronics field, thereby forming a distinct competitive advantage.

This acquisition will enable JCET to forge a closer strategic partnership with Western Digital, bolster customer loyalty, improve the company's long-term profitability, and increase shareholder returns.