8-KOther Events

APPLIED MATERIALS INC /DE 8-K Report, Corporate Update (Jul 1, 2020)

Filed July 1, 2020For Securities:AMAT

Summary

Applied Materials, Inc. (AMAT) announced on June 30, 2020, that it has mutually extended the outside date for its acquisition of Kokusai Electric Corporation. The original outside date was June 30, 2020, and it has now been pushed to September 30, 2020. This extension is permitted under the original Share Purchase Agreement and can be further extended under specific conditions related to regulatory approvals. This development is significant for investors as it indicates continued progress, albeit delayed, in the Kokusai Electric acquisition. The primary remaining hurdle is securing the final regulatory approval from the State Administration for Market Regulation of the People's Republic of China. The company remains actively engaged with Chinese regulators to finalize this approval. Investors should monitor the progress of this regulatory approval, as its completion is crucial for the consummation of the transaction.

Key Highlights

  • 1Applied Materials (AMAT) has extended the closing date for the Kokusai Electric acquisition to September 30, 2020.
  • 2The extension was mutually agreed upon by Applied Materials and the seller, KKR HKE Investment, L.P.
  • 3The acquisition's closing is contingent on obtaining required regulatory approvals.
  • 4The primary outstanding regulatory approval is from China's State Administration for Market Regulation.
  • 5AMAT and the seller are actively working with Chinese regulators to secure the final approval.
  • 6The original agreement allows for further extensions if regulatory approvals are the only remaining conditions to closing.

Frequently Asked Questions

The main purpose of this filing is to inform investors about the mutual extension of the outside date for Applied Materials' acquisition of Kokusai Electric Corporation. The new outside date is September 30, 2020.

The closing date has been extended because the transaction is still awaiting final regulatory approval, specifically from China's State Administration for Market Regulation. The parties have mutually agreed to extend the deadline to allow more time to secure this approval.

The key conditions for closing the acquisition include obtaining all required regulatory approvals, particularly the one from China's State Administration for Market Regulation. Other conditions precedent to closing must also be satisfied.

This extension suggests that the Kokusai Electric acquisition is still progressing but faces a significant regulatory hurdle in China. While it delays the completion, the mutual agreement indicates both parties are committed to closing the deal, provided regulatory approval is obtained. Investors should continue to monitor regulatory developments.