Applied Materials Inc. agreed to buy rival semiconductor equipment manufacturer Tokyo Electron Ltd. Inc. for $9.3 billion in stock on September 24. The companies styled the deal as a merger of equals, though Applied Materials shareholders will own about two-thirds of the combined company, and Applied Materials CEO Gary Dickerson will hold the same title there. His counterpart at Tokyo Electron, Tetsuro Higashi, will be the chairman of the board. The companies did not reveal the name of the new entity, which will be incorporated in the Netherlands for tax reasons.
Applied ranked first in the world in sales of semiconductor manufacturing gear last year, while Tokyo Electron was third, which means that the deal will likely get a thorough antitrust review. Tokyo Electron stock jumped 14 percent on the news, while Applied Materials rose 8 percent.
