The Tool Desk
Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →China’s Unisplendour did not ultimately buy 15% of Western Digital. In September 2015, its subsidiary Unis Union agreed to purchase approximately 15% of Western Digital through newly issued shares for $3.775 billion, but the agreement was terminated in February 2016 after a CFIUS investigation began.
What Unis proposed to buy
Western Digital announced on September 30, 2015 that Unis Union would purchase 40,814,802 newly issued Western Digital common shares at $92.50 each. The stated total investment was $3.775 billion.
Western Digital described the resulting ownership as approximately 15%, calculated using its issued and outstanding shares as of September 25, 2015. The percentage was therefore an approximate figure tied to that specific share-count date, rather than a permanently fixed ownership percentage.
| Term | Proposed arrangement |
|---|---|
| Investor | Unis Union, a subsidiary of Unisplendour |
| Shares | 40,814,802 newly issued Western Digital shares |
| Price | $92.50 per share |
| Total investment | $3.775 billion |
| Approximate ownership | 15%, based on Western Digital shares outstanding as of September 25, 2015 |
What rights and restrictions were included
The proposed investment was more than a passive stock purchase. Unis was to receive a limited governance role and accept restrictions on how it could build, vote, or dispose of its position.
Crashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteWindows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstall#1 Best Overall
- High capacity in a small enclosure – The small, lightweight design offers up to 6TB* capacity, making WD Elements portable hard drives the ideal companion for consumers on the go.
- Plug-and-play expandability
- Vast capacities up to 6TB[1] to store your photos, videos, music, important documents and more
- SuperSpeed USB 3.2 Gen 1 (5Gbps)
Board representation
Unis would have the right to nominate one Western Digital director. That nomination right would end if Unis’s ownership dropped below 10%.
Standstill and voting limits
The agreement included a five-year standstill restricting additional position-building and related actions. It also imposed voting restrictions.
Lock-up and transfers
Unis’s shares were subject to a five-year lock-up, with limited annual transfer rights. These provisions were intended to prevent a rapid change in ownership or control while allowing only controlled sales.
Rank #2
- Plug-and-play expandability
- SuperSpeed USB 3.2 Gen 1 (5Gbps)
Why the purchase did not close
The transaction encountered U.S. national-security scrutiny. On February 23, 2016, Western Digital said the Committee on Foreign Investment in the United States (CFIUS) had informed the parties that it was undertaking an investigation under the Exon-Florio Amendment to the Defense Production Act.
That investigation opened a 15-day period during which Western Digital or Unis Union could terminate the stock purchase agreement. Unis Union exercised that right and terminated the agreement in February 2016. Western Digital said no party would owe a termination fee.
The U.S.-China Economic and Security Review Commission later listed the proposed 15% Western Digital investment as withdrawn because of CFIUS concerns. Thus, the accurate description is a proposed 15% stake—not a completed acquisition.
Rank #3
- High-capacity add-on storage.Compatibility : Windows 10 plus, Reformatting required for use with MacOS.
- Fast data transfers
- Plug-and-play ready for Windows PCs
- WD quality inside and out
How the failed investment affected SanDisk
Western Digital separately announced an agreement to acquire SanDisk on October 21, 2015. The merger agreement used different consideration depending on whether the Unis investment closed.
| Situation under the merger terms | SanDisk consideration |
|---|---|
| If the Unis investment closed | The merger agreement provided for the consideration applicable under that scenario. |
| If the investment did not close or was terminated | $67.50 in cash plus 0.2387 Western Digital shares for each SanDisk share |
After Unis terminated the stock agreement, Western Digital said the alternative cash-and-stock consideration represented $78.50 per SanDisk share, using Western Digital’s February 22, 2016 closing share price. That $78.50 amount was a dated, price-dependent calculation—not a fixed cash offer or an enduring standalone valuation.
Proposed deal versus actual outcome
| Question | Proposed terms | Actual outcome |
|---|---|---|
| Did Unis acquire the shares? | Agreement to buy newly issued shares | No. Unis Union terminated the agreement in February 2016. |
| Stake | Approximately 15%, based on the September 25, 2015 share count | No resulting ownership stake from this transaction |
| Investment | $3.775 billion at $92.50 per share | Purchase did not close |
| Governance | One board nomination right while ownership remained at least 10% | Right never became effective through a completed purchase |
| Regulatory path | Subject to CFIUS review | CFIUS investigation announced; agreement terminated during the permitted termination period |
| Termination fee | Specified by the agreement | Western Digital said none of the parties incurred one |
What the headline gets wrong
The phrase “China’s Unis buys 15% stake in Western Digital” describes the original proposal but not the final result. A precise account must use “proposed” or “agreed to buy” and then explain that CFIUS scrutiny preceded termination. There is no basis in the transaction record to describe Unis as having completed the purchase or to infer that it became a 15% Western Digital shareholder through this deal.
Rank #4
- USB-C and USB 3.1 compatible.Specific uses: Business, personal
- Innovative style with refined metal cover
- Password protection with 256-bit AES hardware encryption
- Formatted for Mac
Frequently Asked Questions
Did China’s Unis actually own 15% of Western Digital?
No. Unis Union agreed to buy approximately 15% through newly issued shares, but terminated the agreement in February 2016 after CFIUS began an investigation.
How much would Unis have paid for Western Digital shares?
The proposed investment was $3.775 billion for 40,814,802 shares at $92.50 each.
What did CFIUS do in the transaction?
CFIUS notified the parties that it was conducting an investigation under the Exon-Florio Amendment to the Defense Production Act. The agreement then entered a 15-day termination period, and Unis Union terminated it.
Best Value
- World’s First 6TB 2.5” Portable Hard Drive
- Slim durable design to help take your important files with you
- Vast capacities up to 6TB[1] to store your photos, videos, music, important documents and more
- Back up smarter with included device management software[2] with defense against ransomware
- Help secure your important files with password protection and hardware encryption
What happened to the SanDisk merger terms?
Because the Unis investment did not close, the applicable alternative consideration was $67.50 in cash plus 0.2387 Western Digital shares per SanDisk share. Western Digital later stated that this equaled $78.50 per SanDisk share using its February 22, 2016 closing price.
The Bottom Line
Unis’s 15% Western Digital stake was an announced $3.775 billion proposal, not a completed purchase. CFIUS scrutiny led Unis Union to terminate the agreement in February 2016, and the failure switched the SanDisk merger to its cash-and-stock alternative.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
