Applied Materials (AMAT) Executive Chairman Mike Splinter is confident that while regulators will take a "close look" at the company's proposed $7.1B acquisition of Tokyo Electron (TOELF.PK), the firm is "confident it will get approved."
Splinter doubts that overlap between Applied Materials' and Tokyo Electron's product lines will be a problem. "Where we actually compete, there is very, very little overlap," Splinter said.
Despite Splinter's optimism, top chip manufacturers such as Intel, Samsung, and TSMC could object to the deal.
The companies believe that they'll gain three points in market share from the merger, as well as improve the supply chain, save money and become more efficient.
Japanese shares jump in early trading, with the Nikkei Average up 2.2% at 10,844, as the dollar trades around its highest level against the yen since mid-2010. Once again, exporters lead the charge: Mazda (MZDAY.PK +7.6%), Sony (SNE +3.9%), Honda (HMC +2.9%), Advantest(ATE +6.5%) and Tokyo Electron (TOELY.PK).
Japanese stocks are higher in early trading, with tech shares taking the lead of Texas Instruments earnings beat after the close today. The Nikkei Average is currently up 0.35% to 8,798: Kyocera (KYO +0.6%) and Tokyo Electron (TOELY.PK +0.9%).