Applied Materials Announces Termination of Kokusai Electric Acquisition Agreement
Applied Materials announced the termination of its share purchase agreement with Kokusai Electric Corporation due to lack of timely approval from Chinese regulators.
Sentiment and the balance of points
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Rhea-AI Summary
Applied Materials announced the termination of its share purchase agreement with Kokusai Electric Corporation due to lack of timely approval from Chinese regulators. As a result, Applied will pay KKR a termination fee of $154 million. CEO Gary Dickerson expressed disappointment but noted a strong future outlook, emphasizing the company's potential for growth and cash returns to shareholders. The company's leadership in materials engineering solutions positions it well within the semiconductor and display manufacturing sectors.
Positive
- Strong future outlook for growth and cash returns.
- Continued leadership in materials engineering solutions.
Negative
- Termination fee of $154 million payable to KKR.
- Failed acquisition may impact investor sentiment.
Details
News Market Reaction – AMAT
The recorded move for AMAT in the trading session of this news was -2.28%.
Data tracked by StockTitan Argus. Session date unavailable.
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SANTA CLARA, Calif., March 29, 2021 (GLOBE NEWSWIRE) -- Applied Materials, Inc. today announced that the amended Kokusai Electric Corporation share purchase agreement with KKR HKE Investment L.P. terminated as of March 19, 2021 as Applied did not receive confirmation of timely approval from the regulator in China. Applied is paying KKR a termination fee of
“While we are disappointed that the transaction will not be completed, Applied Materials’ future outlook has never been better,” said Gary Dickerson, president and CEO of Applied Materials. “Our innovations are accelerating our customers’ roadmaps and we have outstanding opportunities to extend our technology leadership, drive profitable growth and deliver attractive cash returns to shareholders.”
About Applied Materials
Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible the technology shaping the future. Learn more at www.appliedmaterials.com.
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