Applied Materials acquires rival Tokyo Electron for $9.39 billion

Applied Materials acquires rival Tokyo Electron for $9.39 billion
Advertisement
Chip-making equipment manufacturer Applied Materials is acquiring Tokyo Electron Ltd., a rival maker of equipment for production of semiconductors, flat panel displays and solar panels.

The two companies said Tuesday their $9.39 billion all-stock transaction will result in the creation of a new company with a market capitalization of about $29 billion.

Tokyo Electron's chairman Tetsuro Higashi said the deal is meant to create a "truly global company" to meet the needs of companies supplying consumer electronics such as smartphones and tablets.

The new company will have shared leadership, with Higashi as its chairman and Applied Materials' president and CEO Gary Dickerson as its CEO.

Applied Materials' shareholders will own about 68 percent of the new company and Tokyo Electron's will hold about 32 percent. The two companies expect the deal to be finalized in the latter half of 2014.

The companies said they plan to conduct a $3 billion stock repurchase program within 12 months of the deal's completion.

Tokyo Electron's profit has stagnated in the past few years because of weaker demand from chip makers.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Apple upgrades iMac family with Intel Haswell chips; starts from Rs. 99,900
Oppo N1 unveiled with CyanogenMod option, 13-megapixel rotating camera
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »