Applied Materials-Tokyo Electron merger scrapped

U.S. manufacturer Applied Materials and Tokyo Electron have agreed to cancel their plans to merge, in what would have created a company with an estimated market value of approximately $29 billion.

According to USA Today, Santa Clara, Cal.-based Applied Materials noted its plan to replace competition that could be lost by the merger was rejected by the U.S. Department of Justice.

"Based on the DoJ's position, Applied Materials and Tokyo Electron have determined that there is no realistic prospect for the completion of the merger," Applied Materials officials said in a statement.

No termination fees will be payable by either party, the semiconductor maker said.

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