Boston, MA 07/30/2014 (wallstreetpr) – Chip giant, Applied Materials, Inc. (NASDAQ:AMAT), has refiled an application with the Chinese Ministry commerce, as it seeks approval for the takeover of Tokyo Electron. According to a U.S. regulatory filing, the two companies refiled in China as a way of allowing additional time for engaging in constructive dialogue with the ministry of commerce.
AMAT Acquiring Tokyo Electronic for $9.39 Billion
The two companies struck a deal on September last year in which Applied Material agreed to acquire Tokyo Electronic for $9.39 billion as the former seeks to counter shrinking customer base that is making earnings from suppliers more volatile. It is unusual for companies to refile for approval of applications for more time, although the size of the deal justifies it. Analyst, Patrick Ho, has already expressed his optimism that the deal will get the needed approval from regulators and sealed, sooner than later.
Applied Materials ceo to be in Charge of Combined Company
Last week there were concerns that the Chinese authorities might try to block the impending merger something that saw the stock plummet in the market. However, most of the analysts, expect the deal to go through something that should be a milestone achievement for Applied Materials which is trying to shun competition from other chip giants Intel Corporation (NASDAQ:INTC). Applied Materials specifically makes equipment used for production of semiconductor and solar photovoltaic products.
There have been reports that Intel and Samsung have been opposing the deal although there are also ways that may be used to make them change their stance. Some analysts remain confident that Chinese authorities will agree to a stream of remedies proposed by Applied Materials, Inc. (NASDAQ:AMAT) consequently approve the merger
Upon the approval of the merger agreement, Gary Dickerson, ceo Applied Materials is expected to lead the combined company according to a statement made by the companies back in September.
