Bain Capital has reportedly reopened discussions with SK Hynix (000660.KS) in an effort to reignite negotiations for the merger of memory chip manufacturers Western Digital (WDC.O) and Japan’s Kioxia Holdings, as per sources cited by Kyodo newswire on Saturday.
SK Hynix, a significant player in the semiconductor industry and an investor in Kioxia, had posed as a rival to both companies. The merger talks, initially initiated in 2021 and experiencing periodic pauses, hit a roadblock in October. SK Hynix had expressed opposition to the deal, citing concerns about the potential impact on the value of its investment in the Japanese firm.
In 2018, SK Hynix invested 395 billion yen ($2.67 billion) in Kioxia as part of a Bain-led consortium that acquired the Japanese company from Toshiba Corp. As a crucial member of this consortium, SK Hynix holds bonds convertible into an equity stake of up to 15%. Its approval stands as one of the necessary preconditions for the merger to proceed.
