Kioxia Is Said to Approach JIC to Back Western Digital Deal (1)

Kioxia Holdings Corp. has approached Japan Investment Corp. about making a capital infusion to support its merger with Western Digital Corp. and strengthen the combined company’s financial base, according to people familiar with the matter.

Kioxia’s lenders are working toward submitting a commitment letter as soon as Friday to help facilitate the agreement, the people said, asking not to identified because the negotiations are private. The banks have signaled the new company’s capital is inadequate and called for addition investment to bolster its balance sheet. JIC, a state-backed investment fund established to boost Japan’s competitiveness in next-generation industries, is considering ...