Tokyo Electron, US-based Applied Materials, scrap merger
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.”