Spotlight: Western Digital deal with Chinese company falls apart under federal scrutiny
An investigation by the U.S. federal government halted a planned sale by Western Digital of a 15 percent stake in the company to a Chinese investor, according to Bloomberg. Because that deal fell apart, WD chose to return to a lower offer from SanDisk. The federal investigation was headed up the Treasury Department's Committee on Foreign Investment in the United States, which reviews multinational acquisitions by foreign businesses for security risks. Bloomberg said this deal follows a trend of Chinese companies facing regulatory hurdles when it comes to acquiring tech assets from the U.S.