Dallas, Texas 01/03/2014 (FINANCIALSTRENDS) – Applied Materials, Inc.(NASDAQ: AMAT)’s merger application with Tokyo Electronic limited has now been pending before the Department of Justice. In December last, the company was requested a ‘second time’ by the Department to provide additional information on the proposed set of transaction both these semi-conductor product majors. According to industry experts the second request is standard procedure by the Department of Justice, when such mergers are under consideration. The needy for lengthening the period of the regulatory review is necessary as under Hart-Scott-RadinoAntiturst Improvements Act of 1976.
Department of Justice is reviewing the legality of the transactions and check for market domination factors, when the two companies were to merger. Additionally, the stock holders ofApplied Materials, Inc.(NASDAQ: AMAT) as well as Tokyo Electronic Limited too have to approve the merger.
Currently, the company expects that the whole review process to be completed before June of 2014, including the transaction.
Applied Materials, Inc.(NASDAQ: AMAT) is a manufacturing of semiconductor equipment, solar photovoltaic cells, flat panel display and other technology related equipment. The company is also involved in the delivery of services related to the core semi-conductor components and related domains.
Applied Materials, Inc.(NASDAQ: AMAT) is 21.32 billion market cap company which trades currently at roughly at $17.55. It’s current trade volumes are 7.78 million shares. However, following the announcement of the merger with Tokyo Electronics Limited, back in September 2013, the share prices have surged on the stock market.
Though, industry insiders believe the merger would create one of the largest semi-connductorprinicpals in the country, the company would offer one of the most diversified product portfolio, allowing the company to operate at various technology levels and platforms. The merger is expected to complement the product strengths of both the companies, allowing the unified version to cut production and operational costs due to higher market volumes and market penetration.