Bain Capital is reportedly in discussions with SK Hynix to resume negotiations for the merger of memory chip manufacturers Western Digital and Japan’s Kioxia Holdings, according to Kyodo newswire’s Saturday report, citing anonymous sources.
SK Hynix, a South Korean chip maker, serves as both a competitor to the companies and an investor in Kioxia. The merger talks, which have experienced intermittent progress since 2021, hit a roadblock in October when SK Hynix opposed the deal, expressing concerns about its potential impact on the value of its investment in the Japanese company.
In 2018, SK Hynix invested 395 billion yen ($2.67 billion) in Kioxia as part of a consortium led by Bain that acquired the Japanese firm from Toshiba Corp. SK Hynix holds bonds that can be converted into an equity stake of up to 15%, and its approval is a prerequisite for the merger.
($1 = 148.1600 yen)