Japanese chipmaker Kioxia is trying to find ways to resurrect merger talks with Western Digital Corp. (NASDAQ:WDC) after discussions were scuttled in October.
Bain Capital, a major holder of Kioxia, is negotiating with SK Hynix to try to get the talks restarted, according to a Kyodo News report on Saturday, which cited people familiar with the matter.
The talks were halted in October after the deal failed to secure approval from SK Hynix, an indirect shareholder in Kioxia. The companies were also unable to agree on the merger’s conditions with Bain Capital, Kioxia’s top shareholder, according to a Nikkei report at the time.
SK Hynix said it wouldn’t agree to the merger of Kioxia and Western Digital’s (WDC) flash memory business due to the impact on the value of the company’s investment.
The Wall Street Journal and others first reported in August 2021 that Western Digital was close to a deal to merge with Kioxia in a transaction that could be worth more than $20 billion.
Western Digital (WDC) announced in June 2022 that it was exploring strategic alternatives, including separating its flash and HDD business, which followed after activist Elliott Management disclosed a stake in May 2022 and pushed for the company to explore separating the company.