Exclusive: Kioxia, Western Digital speed up merger talks as memory chip demand slumps

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Kioxia Holdings Corp and Western Digital Corp are speeding up merger talks and nailing down a deal structure, two sources with direct knowledge of the matter said, as a slumping flash memory market puts fresh consolidation pressure on the world's No. 2 and No. 4 players.

Such a split would precede the flash memory combination with Kioxia, one of the sources said, adding that the merged company might pursue a listing after the deal.in 2018 to a consortium led by Bain Capital for $18 billion. It has shelved plans for an initial public offering due to the deteriorating flash-memory market. Toshiba still owns 40.6% of Kioxia.of the Japanese company.

Kioxia's falling valuation is one of the factors that dragged down JIP's offer price, according to a Toshiba filing. In Japan, the two companies jointly produce NAND flash memory chips, which do not need power to retain data and are used in smartphones, personal computers and data centre servers.

 

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