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US/Japan: Optimism high for $9B chipmaking buyout despite intense scrutiny

 |  October 3, 2013

Reports say traders are optimistic that US-based Applied Materials’ bid for Japan-based Tokyo Electron will succeed, despite heavy regulatory scrutiny.

The word’s largest supplier of chipmaking equipment launched its $9.39 billion offer for the Tokyo firm in an agreement made last week. Together, the companies would control about one-quarter of the global market.

While traders are optimistic, the deal remains subject to regulatory approval within the US and Japan, as well as China, which is notorious for being heavy-handed in its merger reviews.

Analyst firm Argus Research Co. estimates a 40 percent chance the deal will be blocked.

Full Content: Bloomberg

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