The expected merger of Western Digital and Kioxia in NAND memory has failed despite high hopes for the possibility of a merger between Western Digital and Kioxia to create the world’s largest NAND flash memory maker.
Western Digital canceled merger discussions after receiving notice from Kioxia. The decision was made after Western Digital failed to obtain the required approvals from SK Hynix, the majority shareholder of Kioxia.
Due to strong opposition from SK Hynix, the deal was effectively frozen and the two parties did not reach an agreement on terms. That sent Western Digital shares down 9.3%.
Uncertainty remains over the fate of the merger, and it’s unclear whether it will be permanently canceled or if it can be revived in the future.
If the merger goes as planned, Western Digital and Kioxia will dominate the domestic and global NAND memory markets, increasing their market share to over 34.3%.
SK Hynix has strongly opposed the merger from the beginning, expressing concerns about the negative impact on its market position and future cooperation opportunities with Kioxia. SK Hynix’s opposition has become a major obstacle to the merger of Western Digital and Kioxia in the NAND memory field.
