Western Digital Corporation (NasdaqGS:WDC) has restarted talks with Kioxia Holdings Corporation in a deal that could unite two technology storage providers, according to people familiar with the matter. 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. 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.