Semiconductor makers Applied Materials (AMAT) and Tokyo Electron Ltd (TYO) ended their 19 month merger agreement after issues with the Department of Justice. Originally announced in September 2013, the deal would have given Tokyo Electron shareholders about $9.4 billion of stock. The idea behind the combination at the time was to meet the growing demand for chips used in smartphones, tablets and other personal electronics devices. The DOJ told the two companies that its ‘coordinated remedy proposal’ would not be enough to offset the damage to competition that would be a result of the combination. Neither company will pay a break fee in the termination of the merger.
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