Influences acting against a WD takeover are Kioxia management and the China regulator, which still hasn’t approved Hynix’s acquisition of Intel’s NAND business and is unlikely to approve a US takeover of Kioxia.
Toshiba, which owns 40% of Kioxia, may well prefer cash to WD shares.
Japan’s Ministry of Economy, Trade and and Industry (METI) is said to be split between the IPO and WD options and it is said that Prime Minister Yoshihide Suga will decide.
If WD buys Kioxia it is thought it will skew Kioxia’s NAND output away from mobile NAND and towards PC NAND.
In 2018, a consortium led by Bain Capital paid $18 billion for the company.