To end merger agreement with Tokyo Electron; to repurchase $3B in stock (11.2% of market cap)
Applied Materials and Tokyo Electron Limited today announced that they have agreed to terminate their Business Combination Agreement (BCA). No termination fees will be payable by either party.
The decision came after the U.S. Department of Justice (DoJ) advised the parties that the coordinated remedy proposal submitted to all regulators would not be 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.
Applied Materials today announced that its Board of Directors has approved a new share repurchase program authorizing up to $3 billion in repurchases over the next three years beginning in the third quarter of fiscal 2015.