Western Digital - Kioxia Merger Halted Due to Opposition from Shareholder SK Hynix

Failed merger between Western Digital and Kioxia could have controlled a third of the global NAND flash market; SK Hynix's opposition to the deal was fear of decreased investment value and market competitiveness.

The planned merger between Western Digital and Kioxia, potentially creating one of the world’s biggest suppliers of NAND memory chips, has been halted due to opposition from shareholder SK Hynix.
South Korean chipmaker SK Hynix, a key investor in Kioxia and a major player in the global DRAM and NAND flash market, reportedly objected to the deal due to concerns about its investment value and market competitiveness.
The merger would have resulted in a conglomerate controlling a third of the global NAND flash market, surpassing current market leader Samsung and dominate a volatile market by leaving SK Hynix far behind.
Prior to the roadblock, the Kioxia-Western Digital merger had secured nearly $13 billion in financing from Japanese lenders, including the Development Bank of Japan.
The two companies have been holding merger talks since 2021 but the deal has continually faced hurdles such as valuation discrepancies, regulatory approvals, and now, shareholder opposition.