TOKYO (AP) — Chip-making equipment manufacturer Applied Materials is acquiring Tokyo Electron Ltd., a rival maker of equipment for production of semiconductors, flat panel displays and solar panels.
The two companies said Tuesday their $9.39 billion all-stock transaction will result in the creation of a new company with a market capitalization of about $29 billion.
Tokyo Electron's chairman Tetsuro Higashi said the deal is meant to create a "truly global company" to meet the needs of companies supplying consumer electronics such as smartphones and tablets.
The new company will have shared leadership, with Higashi as its chairman and Applied Materials' president and CEO Gary Dickerson as its CEO.
Applied Materials' shareholders will own about 68 percent of the new company and Tokyo Electron's will hold about 32 percent. The two companies expect the deal to be finalized in the latter half of 2014.
The companies said they plan to conduct a $3 billion stock repurchase program within 12 months of the deal's completion.
Tokyo Electron's profit has stagnated in the past few years because of weaker demand from chip makers.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Original headline: Applied Materials in takeover of Tokyo Electron
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Some California Cities Seeking Water Independence
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- SoCalGas Reaches Record Spend on Diversity Suppliers
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- Will Missing Malaysian Jet Prompt Aviation System Change?
- Obama Seeks to Stay Neutral in CIA-Senate Conflict
- GM Recall Poses First Major Test for New CEO