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Western Digital (NASDAQ:WDC) is gaining premarket after a report by Bloomberg stated the company and Kioxia Holdings Corp. are moving forward in their merger talks and have put together a rough structure that would result in a dual-listing in Japan.
Bloomberg, citing people familiar with the matter, said that under the terms discussed by the companies, Western Digital’s flash business would be spun off and merged with Kioxia, forming a publicly traded company in the US.
The publication’s sources said the company would then also plan a second stock listing in Japan, with WDC’s management expected to lead the combined company.
They add that the companies are working towards an announcement in the next few months, although they warn that the details are not yet finalized and could be altered.
Western Digital shares are up 4% premarket.
