Applied Materials at 5-year highs after $9B Tokyo Electron deal
- Cromwell Schubarth
- Senior Technology Reporter- Silicon Valley Business Journal
- Email | Twitter | Google+
The Santa Clara company's shares closed at $17.44 after soaring as high as $17.52 following the word that the world's No. 1 maker of equipment used to make semiconductors will buy its No. 3 rival. The last time the stock was at this level was in August 2008, just before the global financial crisis struck.
The combined company, which will have a new name that has not yet been announced, will be incorporated in the Netherlands and have headquarters in Santa Clara and Tokyo.
The deal could face antitrust scrutiny, given the dominant position of the companies in the chipmaking equipment industry. It isn't expected to close until the second half of next year.
Applied Materials jumped to the No. 1 spot in the chipmaking equipment industry in 2011 when it bought Varian for $4.9 billion, passing ASML of the Netherlands. The Dutch company is now No. 2 between Applied and Tokyo Electron.
The chipmaking equipment industry has suffered in recent years as its customers have dealt with declining PC sales and the shift to mobile devices. Sales of chip making equipment dropped by 16 percent last year to $37.8 billion, according to tech research firm Gartner.
In its most recent quarter Applied reported a 23 percent drop in earnings to $168 million on a 15 percent revenue decline to $1.98 billion.
Applied Materials will own about
68 percent of the new company and its CEO, Gary Dickerson, will
remain in that position.
Dickerson was promoted last month
to the top job at the company from his previous role as president. He succeeded
Michael Splinter, who
had led Applied since 2003. Dickerson was CEO of Varian when it was bought by
Applied two years ago.
Cromwell Schubarth is the Senior Technology Reporter at the Business Journal. His phone number is 408.299.1823.
Next Article: The best California
colleges to work for
Installment loans no credit check have an immense effect on instantaneous requirements without waiting for an elongated time. Moreover, there is no decision of approval based on previous arrears or debts. Thus, the borrower is relieved from such a worry. His appeal will not be turned down even if he has entered in the bad books of other banks.
ReplyDelete6 month loans same day
6 month loans bad credit lenders
small loans for 6 months
When it comes to perfect Bathroom Design Ideas for our homes, which are often very suspicious that it is difficult, time consuming and expensive decision, but there are a variety of forms, and aspects that can be considered to give a better chance if the achievement Ideal bathroom next to you wanted.
ReplyDeleteFor More Detail us at: http://www.ukbathroomhub.co.uk/bathroom-accessories.html
It is exciting to imagine Combo Leggings Offer asked the reinvention of popular ethnic wear. Suits emerged as one of the major trends that ethnic wear framework, increasing ease of use and offer great variability in the shade.
ReplyDeleteMore Details: http://www.nituwears.co.in/legging-combos.html