Kioxia Is Said to Approach JIC to Back Western Digital Merger

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(Bloomberg) -- Kioxia Holdings Corp. has approached Japan Investment Corp. about making a capital infusion to support its merger with Western Digital Corp...

-- Kioxia Holdings Corp. has approached Japan Investment Corp. about making a capital infusion to support its merger with Western Digital Corp. and strengthen the combined company’s financial base, according to people familiar with the matter.Where Does Israel Get Its 220,000 Barrels of Oil Every Day?Kioxia’s lenders are working toward submitting a commitment letter as soon as Friday to help facilitate the agreement, the people said, asking not to identified because the negotiations are private.

Western Digital and Kioxia have talked for years about a possible combination, yet discussions have been snarled over issues of control, leadership, economics and politics. In theory, merging the two operations would help the companies compete against the memory chip industry’s largest players.In the latest iteration of the talks, Western Digital would own slightly more than 50% of a newly created holding company, while Kioxia would own the rest, the people said.

It’s not clear yet how SK Hynix’s objections will affect the outcome of the deal talks. An agreement could get announced despite the company’s resistance, as Bain and Kioxia work on a resolution, the people said. While multiple people said SK Hynix has no veto rights over the deal, other people said the company’s consent will be necessary because it’s a major investor.

 

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