Shulou(Shulou.com)11/24 Report--

CTOnews.com, January 22 (Xinhua) according to Bloomberg, progress has been made in merger talks between Western Digital and Japanese memory chip maker Xia Xia, and a rough trading structure has been finalized.

It is reported that under the terms under discussion between the two sides, Western Digital will spin off its flash memory business and merge with Xia Xia to form a listed company in the United States. According to the report, the company will also plan a dual listing in Japan. The two companies are working hard to announce an agreement in the coming months, but the details have not yet been finalised and could change.

They resumed talks on a merger late last year after it was reported earlier this month that Western Digital's planned acquisition of about $20 billion for armor was cancelled because of opposition from Japan, but there was still a possibility of a deal between the two companies.

The armor was spun off from Toshiba in 2018, and the company and Western Digital operate a joint flash chip factory in Yokkaichi in central Japan.

CTOnews.com has learned that Western Digital had previously said it was reviewing strategic alternatives, including options to spin off its flash and hard drive businesses. In August 2021, it was reported that Western Digital was in early talks with Shexia about a possible merger and acquisition, which could be worth more than $20 billion (currently about 137.8 billion yuan).

Tu Yuan Pixabay in fact, most experts believe that there is little hope for the merger between Western Digital and Armor, mainly because the storage semiconductor industry has attracted so much attention in recent years, and storage semiconductors have become a key industry in a country, so experts generally believe that it is difficult for the merger of the two companies to be approved by relevant institutions.

Just as it was reported in August last year that Western Digital's plan to buy Knight-errant for about $20 billion was cancelled due to opposition from Japan, analysts do not expect Japan to give up on Knight-errant. At present, the majority shareholder of Xia Xia is a consortium of South Korean, American and Japanese companies, and there is no reason for the United States to risk pushing for a merger when American companies have become major shareholders.

In the third quarter of last year, Shexia was the world's second-largest manufacturer of NAND flash memory, with a market share of 20.6 per cent, while Western Digital was the fourth-largest supplier with a market share of 12.6 per cent, according to research institutions.

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