SK Hynix "No Persuasion from Korean Government Regarding Kioxia-WD Merger"
Official Denial by Japanese Media
"Continued Reports Citing Incorrect Information"
Regarding reports by Japanese media that the Korean government persuaded SK Hynix to agree to the merger between Japanese NAND flash manufacturer Kioxia (formerly Toshiba Memory) and American Western Digital (WD) together with U.S. and Japanese government officials, SK Hynix officially denied the claims, stating that they are "not true."
On the 4th, SK Hynix stated in a press release, "We have never been pressured or persuaded by the Korean government," adding, "Since incorrect information has been repeatedly cited and reported domestically, we are correcting the facts."
Earlier, Japan's Asahi Shimbun reported on the 23rd of last month that Kioxia and Western Digital would resume semiconductor business integration negotiations, which had been halted last October due to opposition from SK Hynix, as early as April.
The newspaper quoted a Bain Capital official participating in the Korea-U.S.-Japan consortium, the largest shareholder of Kioxia, saying, "During last year's negotiations, then Japanese Minister of Economy, Trade and Industry Yasutoshi Nishimura, U.S. Secretary of Commerce Gina Raimondo, and the Korean government all tried to persuade SK Hynix, but SK did not agree."
While SK Hynix does not agree to the merger between Kioxia and Western Digital, it maintains an open stance toward cooperation with Kioxia. SK Hynix has indirectly invested about 4 trillion won in Kioxia through the consortium. Therefore, SK Hynix's consent is required for the merger of the two companies.
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Earlier, on the 19th of last month, SK Hynix President Kwak No-jung met with reporters after the Korea Semiconductor Industry Association's regular general meeting and said, "There is no change in our position of not agreeing to the merger," adding, "We continue to maintain this stance from the perspective that we have a duty to protect asset value as investors." However, he added, "We are always open to cooperation," and said, "If there is a good way to cooperate for a win-win between us and Kioxia, we are always willing to consider it."
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