International Regulators are Likely to Clear Applied Materials-Tokyo Electron Deal

NEW YORK (The Deal) -- The proxy for Applied Materials (AMAT) $2.6 billion acquisition of Tokyo Electron has cleared but antitrust regulators in a number of jurisdictions are still looking at the semiconductor combination.

The proxy cleared the Securities and Exchange Commission Wednesday and a Applied Materials shareholder vote for the merger is set for June 23. The merger requires the approval of the shareholders of both companies and Tokyo Electron's shareholder vote is June 20.

The deal remains under review by the U.S. Department of Justice; the Ministry of Commerce in the People's Republic of China, the German Federal Cartel Office, South Korea's competition regulators and the Japanese Federal Trade Commission.

It seems that the resolution of all of the regulatory reviews could converge on the end of July or beginning of August.

China's MofCom accepted the merger filing Jan. 26 and the review is approaching the end of its 90-day, second phase. Assuming a standard 180-day review, without further extensions, the MofCom process could end near the end of July.

The deal was pushed into a second phase in Germany, which also could reach a conclusion near the close of July, but is expected to require divestitures.

The DOJ issued a second request Dec. 12, a review that is ongoing, which is also expected to require some divestitures.

The merger received clearance from the Committee on Foreign Investment in the U.S. in late February. The deal is subject to filing with the Minister of Finance in Japan, which has similar national security oversight as CFIUS, but the merger close is not conditioned on receipt of that approval.

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