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Western Digital In $20B Talks To Merge With Kioxia

 |  August 25, 2021

Western Digital is in advanced talks to merge with Japan’s Kioxia Holdings, according to The Wall Street Journal, in a deal that could be valued at more than US$20 billion and further reorder the global chip industry.

Long-running discussions between the companies have heated up in the past few weeks and they could reach agreement on a deal as early as mid-September, the people said. Western Digital would pay for the deal with stock and the combined company would likely be run by its Chief Executive, David Goeckeler, the WSJ reported.

There’s no guarantee Western Digital, which had a market value of around US$19 billion Wednesday afternoon, August 25, will seal an agreement, and Kioxia could still opt for an initial public offering it had been planning or another combination.

The Wall Street Journal reported in March that Western Digital andMicron Technology  were examining potential deals with Kioxia, which makes NAND flash-memory chips used in smartphones, computer servers and other devices. Micron’s interest has since cooled and Kioxia has been focused on discussions with Western Digital, which already has deep existing ties with the Japanese company.

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