Bain is in negotiations with SK Hynix to restart Western Digital-Kioxia merger talks

Bain Capital is in talks with SK Hynix about reviving plans to join memory chip producers Western Digital and Japan’s Kioxia Holdings.

Bain Capital is in talks with SK Hynix to revive negotiations to join memory chip producers Western Digital and Japan’s Kioxia Holdings, according to sources. The South Korean chipmaker competes with both firms and also invests in Kioxia.

The merger talks, which had been on and off since 2021, came to a halt in October when SK Hynix opposed the proposal, citing the potential impact on the value of its investment in the Japanese company.

SK Hynix invested 395 billion yen ($2.67 billion) in Kioxia in 2018 as a member of a Bain-led consortium that bought the Japanese startup from Toshiba Corp. It holds bonds that can be converted into equity ownership with up to 15% approval, which was one of the preconditions for the merger.

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