Western Digital and Kioxia plan to reach merger agreement as soon as possible this month

According to news from this site on October 14, it is reported that Kioxia Holdings will reach a merger agreement with Western Digital as soon as this month. If the two parties merge, then its semiconductor memory business will become the largest in the world.

Western Digital acquired solid-state storage manufacturer SanDisk for $19 billion in 2016, and also acquired Control of the Kioxia (formerly Toshiba) joint venture. Western Digital is currently preparing for a new stage of transformation and plans to sell its storage business to Kioxia.

According to the Nikkei Asian Review, After careful negotiations, the two companies will establish a new holding company after the merger. After exchanging the number of shares required by the new company, Western Digital will retain 50.1 % of the assets, and the remaining 49.9% will belong to Kioxia.

The president of Kioxia manages the business, and Japanese representative companies will occupy most of the seats on the board of directors. The new company will be registered in the United States but will be headquartered in Japan, and the company's shares will be listed on the U.S. and Tokyo stock exchanges.

Last year, Western Digital and Kioxia combined controlled 32% of the flash memory market, trailing only leader Samsung Electronics' 34%.

According to the British research company Omdia, if merged, the global market share in the NAND field based on value would be 35.4% as of the end of March this year, surpassing South Korea's Samsung Electronics (34.3%) to rank first in the world.

We are currently negotiating with potential creditors who may provide US$10 billion to US$12.7 billion in funding, including major Japanese banks

To promote the merger, three major banks including Mitsubishi UFJ Bank The Japan Policy and Investment Bank is considering providing about 1.9 trillion yen (note on this site: currently about 92.91 billion yuan) in funds, and plans to issue a "credit certificate" for committed financing as soon as the 20th of this month. Kioxia Holdings and Western Digital will finalize the details of a merger agreement after receiving funding guarantees.

Advertising statement: The external jump links (including but not limited to hyperlinks, QR codes, passwords, etc.) contained in the article are used to convey more information and save selection time. The results are for reference only. All articles on the site contain this statement.

The above is the detailed content of Western Digital and Kioxia plan to reach merger agreement as soon as possible this month. For more information, please follow other related articles on the PHP Chinese website!