TOKYO: Japanese semiconductor equipment maker Tokyo Electron and US rival Applied Materials cancelled their merger on Monday after US competition regulators rejected the multibillion-dollar deal.
The announcement comes several days after Comcast and Time Warner Cable scrapped their mega-merger plans, due to opposition by the US Department of Justice to the whopping $45 billion tie-up of the cable and broadband Internet giants.
Applied Materials said it had called off its nearly $10 billion bid for Tokyo Electron, first announced in 2013, after proposed tweaks to the deal had failed to convince DoJ antitrust officials.
The deal would have combined the two largest providers of non-lithography semiconductor manufacturing equipment.
Both make machines that prepare silicon wafers for imprinting with the circuits that turn them into processors.
The Justice Department, explaining its opposition to the deal, said that the proposed remedy to its concerns “would not have replaced the competition eliminated by the merger, particularly with respect to the development of equipment for next-generation semiconductors,” it said.