Tuesday, September 24, 2013
DJ: Tokyo Electron, Applied Materials Agree To Merge
TOKYO--Japanese semiconductor production equipment maker Tokyo Electron Ltd. (8035) said Tuesday that it and Santa Clara-based Applied Materials Inc. have agreed to merge their operations, in move that will create a firm with a market capitalization of $29 billion.
Under the accord, one Tokyo Electron share will be exchanged for 3.25 shares of the new entity. Meanwhile, one Applied Materials share will exchanged for one share of the new company. The two firms will be united in a joint holding company in the Netherlands.
The extent of Japan's semiconductor problems became apparent last year when Elpida Memory Inc. filed for bankruptcy protection. Another domestic chipmaker, Renesas Electronics Corp., was saved last year by a Y200 billion bailout from the Japanese government.