Japanese electronics giant, Toshiba, has received a buyout offer from CVC Capital Partners, a British private equity fund. The deal is estimated to be worth $20 billion.
If successful, the offer will allow Toshiba to focus on renewable energy and other core businesses.
The deal with CVC Partners would rank among the top 20 largest leveraged buyouts in history, but because of Toshiba’s involvement in nuclear power stations, it would require the Japanese government’s permission.
Last year, the company sold its final stake in the personal computer maker Dynabook, marking the end of its connection with making PCs or laptops.
The company has been at the centre of a number of scandals in recent years, including false accounting and huge losses linked to its US nuclear unit. It was forced to sell its profit-making chip sector to make up for huge losses.
Meanwhile, LG Electronics has also announced that it is exiting its mobile phone business, a strategic decision approved by its board earlier. The company will now focus on growth areas like electric vehicle components, smart homes, robotics, artificial intelligence, platforms, and smart devices.
The company will wind down the mobile phone business by July 31. However, its current mobile inventory will still be available for sale. LG will also offer support services and software updates for its mobile devices for “a period of time which will vary by region.