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AUGUST 2019      TAP TIMES          -7-           price and the prospect of a review by
                                                                government authorities, according to the
                Applied Materials (from 6)
                                                                Kokusai Electric operates from its Tokyo
                                                                headquarters with a factory in Toyama,
        Electric.  In 2017, global investment giant             Japan. Applied runs its operations from
        KKR of New York bought the semiconduc-                  Santa Clara.
        tor equipment segment, making thin-fi lm
        processing equipment, of Hitachi Kokusai.
                                                                A new business group
        KKR often buys companies with the inten-                After the close of the transaction, Kokusai
        tion of restructuring them, then selling                will operate as a business unit of Applied’s
        them off for a profi t.                                 Semiconductor Products Group and will
                                                                continue to be based in its current Japan
        Finding a buyer                                         sites.
        KKR has had diffi culty fi nding a buyer for
        Kokusai Electric amid the recent downturn               The boards of both companies have ap-
        in the semiconductor industry, according                proved the deal.  As of this date, neither
        to the Nikkei Asian Review.                             the U.S. government nor the Japanese
                                                                government has raised anti-competitive
        Japanese players showed interest but were               concerns, although this still could happen.
        deterred by a potentially high purchase                 The Trump administration has not looked
                                                                kindly at most large mergers.  Next page

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