Kioxia resumes merger talks with Western Digital amid stock volatility

Kioxia shares fell 9.6 percent to 264.80 euros amid a broader sell-off in Japanese semiconductor and AI stocks. Despite the price drop, reports indicate that merger discussions between Kioxia and Western Digital have been resumed. This potential consolidation in the NAND flash market follows the February 2025 spin-off of SanDisk from Western Digital.

Kioxia is also undergoing significant structural changes. Toshiba has reduced its stake to 14.12 percent, while Bain Capital-linked vehicle BCPE Pangea Cayman2 has become the largest shareholder with 14.19 percent. SK Hynix remains a major indirect shareholder through convertible bonds held by the Bain vehicle.

In addition to merger talks, Kioxia has completed its 800 billion yen share buyback program ahead of schedule as of August 10. The company is also preparing for a 1:3 stock split, which is set to become effective on October 1, increasing the number of authorized shares from 2.07 billion to 6.21 billion.