The Strategist

WSJ: Western Digital discusses merger with former Toshiba subsidiary


08/26/2021 - 09:21



Hard drive and disk drive manufacturer Western Digital is in talks to merge with Japanese company Kioxia, formerly owned by Toshiba and known as Toshiba Memory, The Wall Street Journal (WSJ) reports citing sources. According to their information, the sides have advanced in discussions of a possible merger.



pixnio
pixnio
Kioxia manufactures flash memory chips used in phones, servers and other devices. Western Digital and Kioxia are already working together under a joint venture agreement that runs through 2027. The expected value of the deal exceeds $20 billion.

Western Digital's stock rose 7.8 percent from its closing price of $65.5 on the news of the talks on NASDAQ. In a moment, the price of the securities, which was below $62 before the WSJ report, was as high as $69.2.

WSJ notes that any deal with the company would require approval from the Japanese government. It should be noted that in May the Nikkei newspaper reported about the intention of the Japanese government to oblige the companies of the key infrastructure industries - in particular, telecommunications and energy - to assess the national security risks that may arise from the use of foreign technology.

source: wsj.com




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