Western Digital Acquirer Kioxia Needs Capital, Taps JIC As Merger Approaches Deadline
Portfolio Pulse from Anusuya Lahiri
Kioxia Holdings Corp is seeking capital infusion from Japan Investment Corp to support its merger with Western Digital Corp (NASDAQ:WDC). The financial details of the capital infusion are undisclosed. The merger aims to create a holding company for NAND flash memory chips production. The deal faced opposition from SK Hynix Inc, a competitor and indirect shareholder in Kioxia. The combined market share of Kioxia and Western Digital for NAND memories is 35.4%.
October 20, 2023 | 1:09 pm
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Samsung Electronics could face increased competition in the NAND flash memory chips market due to the merger of Western Digital and Kioxia.
The merger of Western Digital and Kioxia could increase their combined market share in the NAND flash memory chips market, posing a threat to Samsung's position.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
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Western Digital is merging with Kioxia, which is seeking capital infusion to support the merger. The deal faced opposition from SK Hynix, a competitor.
The merger could strengthen Western Digital's position in the NAND flash memory chips market. However, the opposition from SK Hynix and the need for capital infusion could delay or complicate the deal.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100