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Business deals

China hurdle threatens Applied Materials' bid for Kokusai Electric

No green light from regulators by Friday would mean a $154m termination fee for KKR

NEW YORK -- Applied Materials' $3.5 billion acquisition of Kokusai Electric from investment firm KKR has failed to receive approval from Chinese regulators, jeopardizing the deal as its final deadline nears, the major U.S. chipmaking equipment supplier warned Monday.

The purchase agreement "may have terminated in accordance with its terms on March 19, 2021 after the parties were unable to confirm timely regulatory approval in China," Applied said.

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