Insiders claim that a potential merger between Western Digital and Kioxia is closer to happening—following longer than anticipated negotiation between involved parties, including Bain Capital and Toshiba. Technicalities have prolonged proceedings—an August 2023 sign off date was expected—but Kioxia Holdings' lenders seem motivated to get everything over the finish line. According to a Bloomberg report, at least three Japanese banks are ready to submit a commitment letter (next month) for the refinancing of ¥2 trillion ($14 billion) in loans—anonymous sources suggest that Sumitomo Mitsui Financial Group, Mizuho Financial Group and Mitsubishi UFJ Financial Group are involved. These organizations hope to fund the merger with Western Digital's flash memory business.

Representatives for Western Digital, Kioxia, Bain Capital and (so far named) Japanese banks have declined to provide statements in response to the Bloomberg report. Allegedly, part of the loan will be used to pay special dividends to Kioxia's shareholders. A Reuters summary of said conditions reads: "Under the terms of the deal being negotiated, Western Digital will hold about 50.5% of the combined company with the remaining 49.5% held by Kioxia...Of the 2 trillion yen loan, 400 billion yen will likely be funded through loan commitments and the Development Bank of Japan will provide a loan of 300 billion yen. The rest will likely be equally split between the three megabanks." Bloomberg's insiders believe that Western Digital's hard drive business is not being offered up.