InsideArbitrage Potential Deal Alert: Western Digital (WDC), Kioxia Revive Merger Talks

POTENTIAL DEAL DETAILS

Western Digital Corp. (WDC) has restarted talks with Japan’s Kioxia Holdings Corp. in a deal that could unite two technology storage providers, according to people familiar with the matter.

Update(s):

January 21, 2023: Western Digital Corp. (WDC) and Japan’s Kioxia Holdings Corp. are progressing in their merger talks and have figured out a rough structure that would eventually involve a dual-listing in Japan, according to people familiar with the matter.

Under the terms being discussed, Western Digital would spin off its flash business and merge it with Kioxia, creating a publicly traded company in the US, the people said, asking not to be named because the matter is private. The company would also plan a second stock listing in Japan, they added.

February 1, 2023: Western Digital Corp. (WDC)  is receiving a $900 million investment led by Apollo Global Management Inc., getting financial firepower at a tough time for the memory industry that could see further consolidation.

May 15, 2023: Reuters reported Kioxia Holdings Corp and Western Digital Corp are speeding up merger talks and nailing down a deal structure.

January 27, 2024: According to Reuters, Bain Capital is in talks with SK Hynix, to restart negotiations to merge memory chip makers Western Digital (WDC) and Japan’s Kioxia Holdings.

February 23, 2024: Semiconductor maker Kioxia Holdings and U.S. partner Western Digital Corporation (WDC) will resume negotiations for a potential merger in late-April 2024, Japanese newspaper Asahi Shimbun reported.

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