Western Digital Corp. fell as much as 16% after deal negotiations with Kioxia Holdings Corp. broke down, quashing hopes for a combination of their flash memory businesses.
Discussions between the two companies have ended for now, according to people familiar with the situation, following remarks by SK Hynix Inc. that it wouldn’t support the merger. That company, the world’s No. 2 memory chipmaker, is an indirect shareholder in Kioxia and felt the transaction would undervalue its stake.
It’s possible discussions could eventually resume, according to the people, who asked not to be identified because the deliberations are private. A representative for San Jose, California-based Western Digital declined to comment. Japan’s Kioxia and South Korea-based SK Hynix didn’t immediately respond to requests for comment after business hours in Asia.
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