Japanese banks to lend up to $13 billion for Kioxia, Western Digital merger-Bloomberg

TOKYO (Reuters) – Sumitomo Mitsui Banking Corp and three other Japanese banks are reportedly considering offering up to 2 trillion yen ($13.5 billion) in loans to support the merger between Kioxia Holdings and Western Digital Corp, according to Bloomberg News.

Reuters previously reported in May that chip manufacturers Kioxia and Western Digital were expediting their merger negotiations.

Reportedly, Sumitomo Mitsui, Mizuho Bank, and MUFG Bank have tentatively planned to collectively provide 1.3 trillion yen, while the Development Bank of Japan is offering 300 billion yen, as mentioned by unnamed sources in the Bloomberg report.

In addition to the 1.6 trillion yen loan commitment, the banks are also anticipated to pledge an extra 400 billion yen, Bloomberg noted.

(Reporting by Kiyoshi Takenaka; Editing by Jacqueline Wong)