Western Digital Corporation (NasdaqGS:WDC) and Kioxia Holdings Corporation are progressing in their merger talks and have figured out a rough structure that would eventually involve a dual-listing in Japan, according to people familiar with the matter. Under the terms being discussed, Western Digital would spin off its flash business and merge it with Kioxia, creating a publicly traded company in the US, the people said, asking not to be named because the matter is private. The company would also plan a second stock listing in Japan, they added.

Western Digital management is expected to run the combined company, the people said. While the companies are working toward an announcement in the next few months, the details aren’t finalized and could still change. Representatives for Western Digital and Kioxia declined to comment.