Tokyo Electron Drops on Report of Withdrawn China Filing

Tokyo Electron Ltd. (8035) fell to the lowest in almost two months after DealReporter said a filing with China’s Ministry of Commerce for its acquisition by Applied Materials Inc. (AMAT) has been withdrawn.

The stock fell 2.7 percent to close at 6,613 yen, the lowest since June 3. The filing has been withdrawn from Mofcom ahead of a deadline, DealReporter said, citing a person familiar with the matter.

Applied Materials agreed in September to buy Tokyo Electron for $9.39 billion in stock to add scale as a shrinking base of clients makes earnings of suppliers more volatile. Intel Corp. (INTC), Taiwan Semiconductor Manufacturing Co. (2330) and Samsung Electronics Co. (005930) now buy the majority of the production machines deployed by the industry and are the top three customers of both companies, according to data compiled by Bloomberg.

Tatsuya Aso, a spokesman for Tokyo Electron, declined to comment. Kevin Winston, a spokesman for Santa Clara, California-based Applied Materials, didn’t immediately respond to an e-mailed request for comment outside normal business hours.

The companies make machines that prepare silicon wafers for imprinting with the circuits that turn them into processors capable of crunching numbers, showing video and connecting to mobile networks, among other tasks.

Tokyo Electron doesn’t intend to walk away from the deal, according to the report from DealReporter. The deal has received strong opposition from China’s Ministry of Industry and Information Technology, DealReporter reported July 21.

To contact the reporter on this story: Takashi Amano in Tokyo at tamano6@bloomberg.net

To contact the editors responsible for this story: Michael Tighe at mtighe4@bloomberg.net Robert Fenner, Aaron Clark

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