WD and Kioxia apparently close to merger

The two storage experts Western Digital (WD) and Kioxia have always worked hand in hand when it comes to producing high-quality hardware. But now they want to take the cooperation to a new level. After all, it has become known that WD and Kioxia are apparently on the verge of a merger. That could stir up the market properly.

Merger plans of WD and Kioxia are not new

There has already been speculation about a possible merger of Western Digital and Kioxia for quite some time. In the meantime, it was also speculated that Micron and Kioxia could make common cause. Therefore, the announcement that a merger is now on the horizon does not come as a surprise, at least to insiders. As has now emerged, there are currently already serious talks between the two companies. If an agreement is reached, the competition will be dealt a real blow. After all, the merger should ensure that both companies have a similarly high position on the NAND flash memory market as Samsung does at the moment. More precisely, WD and Kioxia should dominate one third of the market after the merger. That presumed negotiations are currently taking place emerges from a report by Nasdaq stock market experts.

Companies want to locate in the U.S.

However, the companies are in negotiations not only with each other, but also with the US Securities and Exchange Commission. After all, a corresponding merger must also be approved by the authorities. If the merger is then perfect, the resulting company will probably have its headquarters in the USA. Nevertheless, according to rumors, the company would also like to be listed on the Japanese stock exchange. In general, the whole thing sounds more like a takeover of Kioxia by Western Digital than a merger. After all, the managerial positions are to be held by WD’s current executives. Already in 2021 a merger between Western Digital and its most significant supplier was in the frame. However, it faltered in the area of investors. Now, however, Western Digital has been able to come up with a suitable investor, making the merger seem perfect.

A drumbeat for the competition?

When two merge, do the third parties get annoyed? In the memory market, the situation could hardly be better described. After all, Samsung held a clear lead here for many years. However, this could come to an end after a merger of WD and Kioxia. After all, a competitor on par would enter the storage market. Industry experts, on the other hand, are excited about the opportunities that could arise from this. After all, competition always stimulates business. In particular, Samsung’s ambition to launch new innovations could be further fueled.