In 2019, Amat announced that it would spend $2.2 billion to acquire Kokusai electric, which is owned by KKR international investment agency
The two companies are semiconductor equipment companies, with annual revenue of Applied Materials exceeding US $14 billion. They are the largest semiconductor equipment suppliers in the world. ASML and Tokyo electronics of Japan rank second and third.
After the acquisition of international electric, applied materials is expected to further enhance its strength and share in the field of semiconductor equipment. Moreover, due to the recent shortage of semiconductor plant capacity, applied materials has taken the initiative to increase the acquisition price from US $2.2 billion to US $3.5 billion.
This acquisition also needs to be approved by the major regulatory authorities in the world, including the United States, the European Union, Japan, South Korea, Israel, Ireland and other countries. It mainly depends on the approval of China’s regulatory authorities.
The deadline for the acquisition is March 26 this year. If the legal approval is not completed by that time, applied materials will terminate the acquisition and compensate IEA US $154 million.
Prior to the acquisition of NXP NXP by Qualcomm, the transaction was not approved by domestic regulatory authorities, and finally the transaction failed, and Qualcomm paid $2 billion in liquidated damages.