WDC - Western Digital talks with Kioxia on merger are advancing - report

Western Digital ( NASDAQ: WDC ) and Kioxia Holdings are advancing in discussions about a potential merger with a rough structure including a dual-listing in Japan being possible parts of the deal.

Western Digital ( WDC ) would spin off its flash business and merge it with Kioxia, creating a new publicly traded company in the U.S, under the current terms being discussed, according to a Bloomberg report late Friday, which cited people familiar. The company would also have a second stock listing in Japan.

Western Digital ( WDC ) management would likely run the combined company, according to the report. The parties are trying to finalize a deal in the next few months, though it's possible no agreement is reached.

The latest update comes after Bloomberg reported earlier this month that  memory-chip firm had resumed merger talks with Japan's Kioxia. The talks resumed late last year.

The reports come after initial talks between the companies for a merger stalled in October 2021. The WSJ 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.

The news also comes after Western Digital ( WDC ) announced in June that it was exploring strategic alternatives, including separating its flash and HDD business , which followed  after activist Elliott Management disclosed a stake in May  and pushed for the company to explore separating the company.

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