#10: Applied Materials (AMAT) Buys Tokyo Electron (TOELY)
Transaction Value: $10 billion
Applied Materials (AMAT) and Tokyo Electron (TOELY) are two of the biggest and most important suppliers to the semiconductor industry in the world, making the machines and technology that turns silicon wafers into computer chips.
Merging the No.1 and No. 3 manufacturers in the industry will create a giant with a market cap of about $30 billion, but more than anything, it’s a defensive move. Technical and financial pressures are squeezing margins and profits in an already mature industry.
Now that the two biggest players have tied the knot, we can expect even more mergers and acquisitions in this sector in 2014.