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Western Digital talks to merge with Kioxia stall

by Mike Robinson

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© Reuters. FILE PHOTO A Western Digital office building in Irvine, California (USA), January 24, 2017 REUTERS/Mike Blake/File Photograph

(Reuters) – Western Digital Corp (NASDAQ: ) talks about merging with Japanese chipmaker Kioxia Holdings Corp, two people who are familiar with it told Reuters Thursday.

Sources said that talks stopped due to concerns over the valuation, approval of the Japanese government, and ongoing strategic reviews at Kioxia shareholder Toshiba(OTC:) Corp.

Reuters earlier reported in August that Western Digital had entered advanced discussions for a $20 billion stock merger. The move would have created a giant NAND memory company to compete with Samsung Electronics (OTC).

In 2018, Toshiba Corp bought Kioxia from a group led by Bain Capital. The sale was canceled after U.S. trade tensions hit Huawei, which is Kioxia’s largest client. Japanese chipmaker Toshiba Corp has stated that it still considers an IPO.

The Wall Street Journal reported this news first earlier in the morning.

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