Hard disk drive maker Western Digital Corp is in advanced talks to acquire memory chipmaker SanDisk Corp. According to a Reuters report, the development has been confirmed by people familiar with the matter, as a frenzy of dealmaking in the semiconductor sector continued.
Western Digital has so far prevailed over other suitors for SanDisk, which has a market capitalization of $14.6 billion, the report adds quoting people involved with the arrangement.
As per the report, negotiations are ongoing and a deal is not certain, but Bloomberg News seem certain that both companies could reach a deal as soon as this week. Having said that, any deal with SanDisk will require a sign off from Toshiba.
SanDisk uses Toshiba’s foundries to make its chips and the two have an important intellectual property-sharing joint venture. If and when this deal comes through, Western Digital will become the biggest name in the storage industry.
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