DoJ scraps another mega-merger: Applied Material and Tokyo Electron

DoJ scraps another mega-merger: Applied Material and Tokyo Electron

After scrapping the merger attempts by the Comcast and the Time Warner Cable, the regulator has moved its march towards tech industry.  Applied Materials and Tokyo Electron have cancelled their acquisition process due to regulatory concerns. Back in 2013, both companies went through another unsuccessful attempt to merge but went in vain as US Justice Department gave red signal to the deal. This time also Justice Department didn’t allow both companies to merge as it will stop innovations and kill competition in the industry. 

Both corporations have been going through a global effort in order to obtain an approval from the regulators across the world for last 19 months. But they have failed to do so. World’s largest semiconductor Applied Materials was planning to acquired the third largest player in the same sector.  The attracted attention of the regulator due to consumer feedback and the lack of option to fill the void created by the merger.

The Tokyo Electron was supposed to pay $1 billion for share buyback and Applied Materials would have spent $3 billion for the same. Most profitable option to deploy the cash of the investors is only through share buybacks or M&A. But the investors are worried because if regulator objects to above mentioned method, the money will be diverted through more dangerous routes. The United States economy is observing many mega-mergers recently after the Comcast deal, now Reynolds American and Lorillard deal is also under the radar. The shareholders of the Applied Materials and Tokyo electrons are closely monitoring the developments related to the deal. 

 

What's New?The latest

Amber Heard donates $7 million settlement to charity

Amber Heard donates $7 million settlement to charity

Amber Heard’s divorce ordeal might have been painful for Johnny Depp and Amber but it was the complete opposite for two charity organizations that will receive the settlement money. The two organizations that she is sending the donations to are the American Civil Liberties Union, to aid in the…

CONTINUE READING

Are there pitfalls to online banking?

Are there pitfalls to online banking?

With easy access to the internet, anyone can have access to a multitude of things – we can get quick advice or more information of things, buy and sell things online, limitless choice of entertainment and even banking services, all at the tip of your fingers! It is all cyberspace, after all,…

CONTINUE READING

How to become a millionaire?

How to become a millionaire?

We all want to be rich some of us do not aspire to be a millionaire, but simply rich enough so they can live comfortably. And on the other hand you have those whose only goal in life is to become a millionaire, which is okay in case you don’t have any other dreams or aspirations. So if you…

CONTINUE READING