(Bloomberg) -- Western Digital Corp. has restarted talks with Japan’s Kioxia Holdings Corp. in a deal that could unite two technology storage providers, according to people familiar with the matter.

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While the structure of a potential deal remains fluid, the parties are discussing merging into one publicly traded company, said the people, who asked not to be identified because the talks are private. The current discussions, which revived late last year, are in the early stage and could also end without an agreement, the people said.

The companies, which have a joint venture that produces flash chips, have been circling each other for years. Western Digital rose as much as 7.4% in pre-market trading in New York, giving the company a value of more than $11 billion.

Talks between the competitors that were reported in 2021 failed to yield what could have been a $20 billion transaction. Closely held Kioxia, which is backed by Bain Capital and Toshiba Corp., also considered pursuing an initial public offering in 2021, though Chief Executive Officer Nobuo Hayasaka said in October it had no immediate plans for an IPO.

Representatives for Western Digital and Kioxia declined to comment.

Strategic Review

In June, Western Digital announced a review of strategic alternatives following discussions with activist investor Elliott Investment Management.

A deal between Western Digital and Kioxia would build on a sometimes fractious partnership.

Western Digital has provided Kioxia with funds for capital expenditure and research and development in return for production out of its Japanese partner’s plants. The relationship turned bitter when Western Digital, under a previous CEO, tried to acquire Kioxia when Toshiba was suffering financial difficulties as a result of its nuclear power division’s troubles.