Home Gadgets Applied Materials acquires rival Tokyo Electron for $9.39 billion

Applied Materials acquires rival Tokyo Electron for $9.39 billion

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Chip-making tools producer applied supplies is acquiring Tokyo Electron Ltd., a rival maker of apparatus for production of semiconductors, flat panel displays, and solar panels.

The 2 firms mentioned Tuesday their $9.39 billion all-stock transaction would result in creating a brand new firm with a market capitalization of about $29 billion.

Tokyo Electron’s chairman Tetsuro Higashi said the deal is supposed to create a “actually global company” to satisfy companies’ wishes presenting consumer electronics such as smartphones and pills.

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The new company can have shared leadership, with Higashi as its chairman and applied supplies’ president and CEO Gary Dickerson.

Applied materials’ shareholders will own about 68 % of the brand new company, and Tokyo electrons will grasp about 32 %. The 2 firms are expecting the deal to be finalized in the latter 1/2 of 2014.

The businesses said they plan to conduct a $three billion inventory repurchase program within three hundred and sixty-five days of the deal’s completion.

Tokyo Electron’s revenue has stagnated previously few years because of weaker demand from chip makers.

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