Investors are trying to restart negotiations on the merger of
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Investors are trying to restart negotiations on the merger of Kioxia and Western Digital

It is widely accepted that the objections of SK hynix, a nominal investor in Kioxia’s capital, became the main obstacle to the merger of this Japanese company with Western Digital last fall. The latter then decided to simply restructure its own business in the second half of the year, but now information has emerged that Bain Capital is interested in reviving the deal.

    Image source: Kioxia

Image source: Kioxia

This was reported this week by the Kyodo publication that refers to it Reuters. Recall that Bain Capital was behind the acquisition of Toshiba’s solid-state memory business in 2018, creating the conditions for the emergence of Kioxia, which adopted the core values ​​​​of this manufacturer. SK hynix’s stake in this transaction was valued at approximately $2.67 billion, giving the company the right to claim a 15% stake in Kioxia in the event of a bond conversion.

Now, Bain Capital has reportedly begun negotiations with SK Hynix to restart the process of preparing a deal between Western Digital and Kioxia. Facing opposition to Kioxia’s takeover, the US hard drive maker decided last October to spin off its flash storage business into a separate company. The restructuring is expected to be completed in the second half of this year. Apparently Bain Capital will offer its alternative before this date. According to preliminary calculations, the merger of Western Digital and Kioxia could create the largest solid-state memory manufacturer in the world, which could even challenge Samsung Electronics.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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