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March 31, 2021, 9:41 p.m. EDT

Micron, Western Digital explore deals to buy Japanese chip maker Kioxia

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Cara Lombardo, Dana Cimilluca

Micron Technology Inc. /zigman2/quotes/205710729/composite MU -0.52%  and Western Digital Corp. /zigman2/quotes/204213617/composite WDC -2.09%  are each exploring a potential deal for Kioxia Holdings Corp. that could value the Japanese semiconductor company at around $30 billion, according to people familiar with the matter, as a global scramble for memory chips used in smartphones and other devices heats up.

A deal for Kioxia , controlled by private-equity firm Bain Capital, isn’t guaranteed, and it isn’t clear how one might be structured. Should a deal come together, it could be finalized later this spring, some of the people said.

Also see: Micron defends ‘disciplined’ capital spending amid chip shortage

The Tokyo-based company had been  planning an initial public offering  before  shelving it in late September , citing the coronavirus pandemic and market volatility. An IPO later this year is still a possibility should the company fail to reach agreement on a deal with one of the suitors, the people said.

Kioxia, formerly part of Toshiba Corp. and known as Toshiba Memory,  was purchased in 2018  by a group led by Bain that included Apple Inc.  /zigman2/quotes/202934861/composite AAPL +0.63% , Dell Technologies Inc. /zigman2/quotes/203822527/composite DELL +0.17%  , Kingston Technology Co. and Seagate Technology PLC /zigman2/quotes/201824240/composite STX -1.47% , in a deal worth around $18 billion. Toshiba Corp. /zigman2/quotes/205628942/delayed JP:6502 -0.06% retained a 40% stake in the business, which was renamed Kioxia the following year.

An expanded version of this report appears on WSJ.com.

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Volume: 9.69M
Aug. 15, 2022 4:00p
P/E Ratio
7.37
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$71.75 billion
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Aug. 15, 2022 4:00p
P/E Ratio
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P/E Ratio
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3.41%
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JP : Japan: Tokyo
¥ 5,187.00
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Volume: 1.47M
Aug. 16, 2022 3:00p
P/E Ratio
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¥2273.18 billion
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