Applied Materials and TEL terminate merger agreement

April 27, 2015

Tokyo Electron Ltd. (TEL) announced that at its board of directors’ meeting held today, the company resolved to terminate the agreement with Applied Materials Inc. to combine their respective businesses through a merger of equals. The combined entity was to have been called ETERIS.

TEL said it had worked with Applied Materials to discuss the combination agreement with government authorities in several jurisdictions. “However,” TEL said in a press release, “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 becomes apparent that such gap will not be able to be bridged.”

The Wall Street Journal reports that the deal, announced in September 2013, would have created a company with a market value of $29 billion. The Journal quotes Gary Dickerson, president and chief executive officer of Applied Materials, as saying, “We viewed the merger as an opportunity to accelerate our strategy and worked hard to make it happen.”

About the Author

Rick Nelson | Contributing Editor

Rick is currently Contributing Technical Editor. He was Executive Editor for EE in 2011-2018. Previously he served on several publications, including EDN and Vision Systems Design, and has received awards for signed editorials from the American Society of Business Publication Editors. He began as a design engineer at General Electric and Litton Industries and earned a BSEE degree from Penn State.

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