Applied Materials Inc. (AMAT) announced Monday that its agreement to purchase Kokusai Electric Corp. has terminated because the company didn't obtain approval for the deal by Chinese regulators in time. Applied Materials had announced in July 2019 that it planned to purchase Japanese chip-equipment company Kokusai Electric from KKR HKE Investment L.P. for $2.2 billion. Applied will pay KKR a $154 million termination fee. The company announced on March 22 that the deal may have terminated because regulatory approval from China didn't come in time but Applied was waiting until the March 26 deadline for payment of the termination fee before formally declaring the deal as terminated. Applied Materials shares are up 0.5% in premarket trading Monday. They've gained 53% over the past three months as the S&P 500 has risen about 7%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 29, 2021 08:20 ET (12:20 GMT)
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