Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Applied Materials, Tokyo Electron Refile for China Approval

Don't Miss Out —
Follow us on:

July 29 (Bloomberg) -- Applied Materials Inc., the largest chipmaking-equipment supplier, refiled an application with China’s Ministry of Commerce seeking approval of its takeover of Tokyo Electron Ltd.

The two companies have refiled their merger notification “to allow additional time to engage in constructive dialogue with the Ministry of Commerce People’s Republic of China,” Applied Materials said in a U.S. regulatory filing yesterday. “The parties continue to expect to close the transaction in the second half of 2014,” it said.

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., Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. 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.

It’s not unusual for companies to refile approval applications to get more time for the review process, said Patrick Ho, an analyst at Stifel Nicolaus & Co. in Dallas. Approval probably will come toward the end of the year, because of the size of the transaction, he said.

“I still believe the deal gets done,” said Ho, who recommends buying Applied Materials stock. “This is more to extend the time period for the review.”

Tokyo Electron fell 0.1 percent to close at 6,610 yen in Tokyo trading, paring a 15 percent gain this year. Shares of Applied Materials rose less than 1 percent to $21.36 at the close yesterday in New York, leaving them up 21 percent this year.

The companies make machines that prepare silicon wafers for imprinting with the circuits that give chips the ability to process radio signals, crunch numbers and perform other tasks in everything from supercomputers to mobile phones.

Gary Dickerson, chief executive officer of Santa Clara, California-based Applied Materials, will lead the combined company, the companies said in September.

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 Aaron Clark, Robert Fenner

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.