It has shelved plans for an initial public offering due to the deteriorating flash-memory market. Kioxia, previously Toshiba Memory, was sold by Toshiba Corp in 2018 to a consortium led by Bain Capital for $18 billion. 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. company to split off its flash-memory business from its hard-drive division since making an initial stock investment last year. Western Digital did not respond immediately to a request for comment.Īctivist investor Elliott Management, which owns convertible preferred shares in Western Digital, has been pushing the U.S. The planned merger is also likely to draw anti-trust scrutiny in several countries, including the United States and China.Ī Kioxia spokesperson declined to comment on speculation. No decision has been made and the details could change, the sources said. Under the plan now being worked out, the merged entity would be 43% owned by Kioxia, 37% by Western Digital and the rest by existing shareholders of the companies, one of the sources said.īoth sources declined to be identified as the talks are private. Combining their flash memory businesses could boost competitiveness against rivals like South Korea's Samsung Electronics. chipmaker Western Digital have been hit hard by plunging market demand and oversupply.
0 Comments
Leave a Reply. |