Lam Research, KLA-Tenor Scrap Merger Due To Antitrust Worries
Semiconductor equipment maker Lam Research has terminated its proposed acquisition of California-based KLA-Tencor KLAC, following antitrust objections from the Justice Department.
The Justice Department's antitrust division said cited serious concerns over the deal because the combined company might restrict competition. The deal would further reduce the number of suppliers in the semiconductor industry, leading to higher prices and hurting innovation.
The deal was announced last October, when KLA-Tencor had agreed to be acquired by Lam in a cash and stock deal worth $10.6 billion. This August, the companies said they were still in talks with the Justice Department and a regulatory clearance for the deal may not be obtained.
Had the deal turned out successful the merger would have created an equipment powerhouse with a huge range of products, customer breadth and scale.