Several Japanese banks are said to be willing to grant Western Digital a substantial loan with which the American company can complete a takeover of the Japanese Kioxia.

According to Bloomberg, at least three Japanese banks are already preparing to provide Western Digital with a loan worth two trillion yen, about fourteen billion dollars. This money is intended, among other things, to finance the merger of Western Digital with Kioxia, the Japanese manufacturer of flash memory.

Put a few cents together

The negotiations have been going on for some time. There was already an attempt in 2021 that came to nothing, and the current negotiations have been ongoing since the beginning of this year. May seemed hopeful, but it is already dragging on longer than expected.

However, three Japanese financial institutions are now expected to submit a commitment letter by October. It’s about:

• Sumitomo Mitsui Financial Group
• Mizuho Financial Group
• Mitsubishi UFJ Financial Group

A small portion would be provided by the Japanese Development Bank, namely three hundred billion yen. So small is relative, with such amounts. Some of this money should be used to pay out Kioxia’s current shareholders.

Almost evenly distributed

When the deal is fully completed, Western Digital can claim a narrow majority with a share of 50.5 percent. The remaining 49.5 percent then goes to Kioxia. However, without Western Digital’s hard drive division, which is not part of this merger.

With this merger, the two companies would form a mastodon in the world of flash technology. The administration would mainly be carried out by people from Kioxia, with Western Digital also being added. Although its numbers were not immediately positive in its last quarterly report, this merger is undoubtedly expected there.