Mega-mergers no longer seem feasible in the sector, with two large mergers having been blocked, Kepler Cheuvreux says in note.
- This leaves bolt-on acquisitions as only option for industry leaders Applied Materials, Lam Research and Tokyo Electron
- ASM international has its appeal as market share and technology leader in atomic layer deposition (ALD) equipment
- Adds that especially as all three deposition leaders have expressed their ambition to grow their ALD businesses
- ASM International’s shareholder structure, antitrust issues, Applied Materials’ right of first refusal, its stake in ASM Pacific Technology, and its foundation may complicate matters
- Buy rating confirmed, PT EU43.50