The US DoJ blocks a merger between two semiconductor equipment suppliers because the combination would have threatened to diminish innovation (AMAT / TEL)

Mergers That Diminish Innovation Present Deal Risk* On April 27, 2015, the Department of Justice’s (“DOJ”) Antitrust Division released a statement regarding Applied Materials Inc. (“AMAT”) and Tokyo Electron’s (“TEL”) joint announcement that they abandoned their merger. The Antitrust Division’s statement indicates that the transaction was blocked because the combination would have diminished innovation. In other words, the Antitrust Division was concerned about the potential loss of head to head competition in the development of future cutting edge semiconductor products and made no allegation that the combined firm would have monopolized any existing or actual product market. The Antitrust Division’s tough stance against AMAT indicates that it is willing to scrutinize and challenge deals that

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  • Doyle, Barlow & Mazard (Washington DC)

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Andre P. Barlow, The US DoJ blocks a merger between two semiconductor equipment suppliers because the combination would have threatened to diminish innovation (AMAT / TEL), 27 April 2015, e-Competitions April 2015, Art. N° 73544

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