Tokyo Elec­tron, US-based Ap­plied Ma­te­ri­als, scrap merger

The China Post - - BUSINESS INDEX & -

Ja­panese chip gi­ant Tokyo Elec­tron and U.S. ri­val Ap­plied Ma­te­ri­als said Mon­day they have agreed to cancel a merger af­ter com­pe­ti­tion reg­u­la­tors re­jected the multi-bil­lion-U. S.-dollar deal.

The an­nounce­ment comes sev­eral days af­ter Com­cast and Time Warner Ca­ble said they had scrapped their mega-merger plans, due to op­po­si­tion by the U.S. Depart­ment of Jus­tice to the whop­ping US$45 bil­lion (NT$1.38 tril­lion) tie-up of the ca­ble and broad­band In­ter­net gi­ants.

On Mon­day Ap­plied Ma­te­ri­als an­nounced it has scrapped its nearly US$10 bil­lion bid for Tokyo Elec­tron, first an­nounced in 2013, say­ing that pro­posed tweaks to the deal did not con­vince the U.S. Depart­ment of Jus­tice (DOJ).

“Based on the DOJ’s po­si­tion, Ap­plied Ma­te­ri­als and Tokyo Elec­tron have determined that there is no re­al­is­tic prospect for the com­ple­tion of the merger,” the U.S. firm said in a state­ment.

Nei­ther com­pany will pay ter­mi­na­tion fees, they said.

Last year Tokyo Elec­tron said com­ple­tion of the deal could be de­layed ow­ing to reg­u­la­tory de­lays.

On Mon­day the Ja­panese firm said its board of di­rec­tors agreed to ter­mi­nate the merger agree­ment be­cause “there re­mains a gap be­tween the view of Tokyo Elec­tron and Ap­plied Ma­te­ri­als and the view of the United States Depart­ment of Jus­tice, and it be­came ap­par­ent that such a gap will not be able to be bridged.”

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