Applied Materials to Buy Ex-Hitachi Biz for 250 B. Yen

Economy

Tokyo, July 1 (Jiji Press)--U.S. chipmaking equipment maker Applied Materials Inc. will acquire Kokusai Electric Corp., formerly under the wing of Japan's Hitachi Ltd. <6501>, for some 250 billion yen, Kokusai Electric said Monday.

Applied Materials concluded a contract with U.S. fund Kohlberg Kravis Roberts & Co. to buy all outstanding shares in Kokusai Electric, the KKR group's wholly owned subsidiary that makes semiconductor production equipment.

According to U.S. research company Gartner Inc., Kokusai Electric had a global market share of 2.0 pct in 2018, ranking seventh.

After the acquisition, Applied Materials' share will increase to more than 20 pct.

In September 2013, Applied Materials reached a merger agreement with chipmaking gear manufacturer Tokyo Electron Ltd. <8035>. The deal was withdrawn later as it was unclear whether the plan would pass a U.S. antitrust review.

[Copyright The Jiji Press, Ltd.]

Jiji Press