Tokyo Electron and Applied Materials drop plans for $10 billion merger
Concerns about restricting competition prompted Applied Materials and Tokyo Electron to abandon plans for a $10 billion merger.
According to a report by the New York Times, the deal between two of the world’s largest producers of computer chip manufacturing equipment will not occur due to concerns raised by the Department of Justice.
The proposed merger was first announced in the fall of 2013, but the companies were unable to work out an agreement that would resolve antitrust issues. Antitrust concerns were raised almost immediately as the proposed merger was announced.
Tokyo Electron and Applied Materials have expanded their presence in the Albany, New York over the past few years. The companies are customers of the $10 billion GlobalFoundries computer chip factory in Saratoga County, and both conducted research at the SUNY Polytechnic Institute campus in Albany.