Memory maker SK hynix opposes merger of Western Digital and Kioxia

SK hynix currently does not want to agree to the merger of competitors Kioxia and Western Digital. The South Korean chipmaker is an indirect shareholder in Kioxia through a consortium. According to SK Hynix, its stake in Kioxia is undervalued in the proposed deal.

SK hynix “does not agree to the deal at this time, in light of the overall impact on the value of the company’s investment,” CFO Kim Woohyun told journalists and analysts during a conference call. The South Korean memory maker became a shareholder of Kioxia when a consortium led by Bain Capital took a majority stake in Toshiba Group. It is not clear to what extent SK hynix’s objections will hinder the possible merger, also writes Bloomberg news agency.

Kioxia and Western Digital have been working on a possible merger for years. According to previous reports, the two companies want to conclude and announce an agreement this month. WD and Kioxia may still do that. Kioxia and Bain Capital are currently working on a solution, insiders report to Bloomberg. Several people told that news agency that SK hynix does not have veto power over the deal, but others said the chipmaker’s consent is needed because it is a major investor in Kioxia.