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US/Japan: Applied Materials scraps Tokyo Electron takeover due to antitrust concerns

By  |  April 27, 2015

US based Applied Materials on Monday scrapped its $10 billion planned takeover of chip-making gear rival Tokyo Electron after the deal, a rare foreign bid for a Japanese firm, fell foul of US anti-trust regulators.

The all-share purchase would have combined the No.1 and No. 3 makers of the equipment that makes semiconductor chips into a group with a stock market value of more than $38.5 billion.

Tokyo Electron said both companies gave up on the deal after more than 18 months of talks after it became clear that differences with the US Justice Department could not be bridged.

“We must take with humility the result that we could not convince the regulators,” Tokyo Electron Chief Executive Tetsuro Higashi told reporters. “The termination of the merger is a very regrettable outcome, but it does no good to mourn.”

 

Full Content: The Wall Street Journal

 

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