Memory chip maker Western Digital Corp and Japan’s Kioxia Holdings Corp have resumed merger talks, reporters reported on Wednesday, citing sources familiar with the matter. The report added that the structure of the potential deal is fluid and the two companies are considering merging into one publicly traded company.
Kioxia, which was spun off from Toshiba Corp, and Western Digital operate a joint factory for flash memory chips in Yokkaichi, central Japan. When asked about the report, Kioxia said it does not comment on market rumors or speculation, while Western Digital said it does not speculate on M&A.
Western Digital shares were up about 8% in after-bell trading. US memory chip firm Western Digital said in June it was reviewing strategic alternatives, including the possibility of separating its flash memory and hard drive businesses. Talks between the two companies have stalled over a number of issues, including valuation discrepancies, uncertainty over getting approval from the Japanese government, reported in October 2021, citing sources.
