Applied Materials Drops Tokyo Electron Bid

Applied Materials and Tokyo Electron have agreed to end the business agreement which would have seen Applied Materials acquire Tokyo Electron for $9.4 billion.

The decision came after the US Department of Justice told the companies that their proposals for a combined business were not sufficient to replace the competition lost from the merger. Based on the DoJ’s position, Applied Materials and Tokyo Electron have determined that there is no realistic prospect for the completion of the merger.

The two companies announced their proposed merger in September 2013 and further announced in February 2014 that the new combined company would be called Eteris.