Western Digital is in advanced talks to merge with Japanese memory chip manufacturers Kioxia, in a deal that could be valued north of $27 billion AUD.
The two companies are currently in a joint venture, but Wells Fargo analyst Aaron Rakers estimates that the merger would see 30 to 35 per cent of the world’s flash storage production and revenue under one roof.
WSJ claims the deal could close as early as mid-September, and Western Digital would make the purchase with stock. The combined company would be steered by Western Digital’s current CEO David Geockeler.
Western Digital had a market value of $USD19 billion at the close of trading yesterday. The company’s stock surged 7.9 per cent, to close at $USD65.50.
Kioxia had been in merger talks with Micron Technology earlier this year; talks that WSJ understands have since cooled.
For the deal to go ahead, the Japanese government would have to agree to the transferral of this technology.
