updated - October 26, 2020 Monday EDT
Western Digital Corp. is in advanced talks with SanDisk Corp. in which Western Digital will acquire SanDisk, people familiar with the matter told Bloomberg.
The people add that a deal could be reached as soon as this week.
Reuters also added that the transaction continues the frenzy of dealmaking within the semiconductor industry.
Deals in the semiconductor industry have been plenty due to the increased demand for cheaper chips and new products.
Bloomberg reported that the semiconductor industry has also been facing rising costs and shrinking customer base.
This also fuels them to get together to add scale.
The People, who asked not to be identified because the information is private, told Bloomberg that the negotiations between Western Digital and SanDisk have accelerated over the weekend.
No agreement though has been signed yet and talks could still fall apart, the people add.
Bloomberg adds that SanDisk has spoken with Western Digital and Micron Technology, Inc. about a possible deal.
Reuters adds that analysts say Toshiba is likely to accept Western Digital as a buyer for SanDisk than Micron, a rival memory chip maker.
Toshiba will need to sign off any deal involving SanDisk as the latter uses Toshiba's foundries to make its chips and both have an important intellectual property-sharing joint venture.
SanDisk has a market valuation of $14.7 billion at the close of trading in New York on Monday, according to Bloomberg.
The company has risen more than 16 percent following Bloomberg's report that it is exploring a sale on October 13, 2015.
Bloomberg added that SanDisk has risen as much as 13 percent in extended trading.
Reuters added that Western Digital has a market capital of about $22 billion that it can use to acquire SanDisk.
The company will also be receiving a $4-billion cash infusion from Tsinghua Holdings Co. Ltd, a state-back company from China, if the deal passes through the regulatory screening in the U.S.
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