Semiconductor equipment makers Applied Materials and Tokyo Electron have agreed to terminate plans for a merger after the US Department of Justice (DoJ) warned about loss of competition from the procedure.
The DoJ advised the two firms that a coordinated remedy proposal submitted to all regulators would not be able to replace the competition lost from the merger.
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Based on this advice, both firms, which have PV related equipment segments, have agreed there is no realistic prospect of completing the merger. Neither company will face termination fees.
In July 2014 it was announced that the two company names were to be dropped for the new name ‘Eteris’, but the merger was never completed.
Gary Dickerson, president and chief executive of Applied Materials, said the merger was an opportunity to accelerate its strategy, but despite disappointment with the cancellation, the company’s existing growth plan is “compelling”.
He added: “We are delivering results and gaining share in the semiconductor and display equipment markets, while making meaningful advances in areas that represent the biggest and best growth opportunities for us.
“As we move forward, Applied Materials has tremendous opportunities to leverage our differentiated capabilities and technology in precision materials engineering and drive a significant increase in the value we create for our customers and investors.”