European Commission Clears Acquisition of Intel’s Nand Memory Division by SK Hynix

The European Commission has approved the acquisition of Intel’s nand memory division by SK hynix. This means that the acquisition, which both companies announced in October last year, is another step closer.

The European Commission does not set any conditions, according to the Commission’s website. That is because Europe does not expect any problems from the takeover. This is due to the limited overlap between the markets of the two companies. The European Commission also saw no reason to believe that the acquisition of both companies would lead to adverse consequences for competitors.

The approval follows that of American authorities and brings the actual acquisition one step closer. Authorities in South Korea have yet to approve the takeover. Both companies announced the planned acquisition in October last year. The acquisition includes Intel’s entire SSD business, including intellectual property and personnel, the nand components division and the wafer division.

The acquisition is valued at $9 billion. SK hynix then pays Intel $7 billion to acquire the SSD division and the Chinese Dalian nand memory manufacturing facility. In March 2025, SK hynix will then pay the remaining $2 billion for intellectual property related to the production and design of nandflash wafers and for the transfer of personnel. The acquisition would make SK hynix the second largest producer of nand memory after Samsung.