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Applied Materials announced today that they are terminating their acquisition agreement for Kokusai Electric. The company cited not receiving regulatory approval from authorities in China as the reason. Regulators in Japan, the United States, and the European Union have all approved the deal. Applied will pay $154M in cash as a termination fee.

Beijing is believed to have held off approving this deal because they fear future U.S. trade action that would further restrict the PRC's freedom to purchase semiconductor equipment sourced from U.S. companies. The Kokusai purchase would move a Japanese semiconductor equipment maker into the fold of Applied, a U.S. company.

Press release here:

-S. Hughes (no AMAT position)
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