Benzinga | Mar 22, 2021 08:48AM EDT

Applied Materials Announces Update On Kokusai Electric Acquisition Agreement; Says If Co Does Not Receive Confirmation Of Timely Approval Prior To March 26 Deadline, Co Will Treat Agreement As Terminated And Pay KKR $154M Termination Fee

Applied Materials, Inc. today announced that the amended Kokusai Electric Corporation share purchase agreement with KKR HKE Investment L.P. may have terminated in accordance with its terms on March 19, 2021 after the parties were unable to confirm timely regulatory approval in China. If Applied does not receive confirmation of timely approval prior to the March 26, 2021 deadline for payment of the termination fee, Applied will treat the agreement as terminated and pay KKR a termination fee of $154 million in cash.

The Applied Materials Board of Directors has approved a new $7.5 billion stock buyback authorization, supplementing the previous authorization which has approximately $1.3 billion remaining. Additional information about Applied's capital allocation plans will be shared at the company's upcoming Investor Meeting.