According to Bloomberg News, citing people familiar with the matter, memory chip maker Western Digital and Japan’s Kioxia Holdings have restarted merger talks.
The current discussions, restarted late last year, are still in their early stages and could end without a deal, the report said. When asked about the news, Kioxia said it does not comment on market rumors or speculation, while Western Digital said it does not speculate on M&A activity.
Kioxia was spun out of Toshiba in 2018, and the company and Western Digital operate a joint flash memory chip factory in Yokkaichi, central Japan.
Western Digital previously said it was reviewing strategic alternatives, including the option to spin off its flash memory and hard drive businesses. In August 2021, it was reported that Western Digital was in early negotiations with Kioxia on possible mergers and acquisitions, and the transaction size may exceed 20 billion U.S. dollars (currently about 137.8 billion yuan).
However, according to a Reuters report in October 2021 citing sources, negotiations between the two companies have stalled over a series of issues, including valuation differences and uncertainty about obtaining Japanese government approval.
