Weil Gotshal and Jones Day take lead roles in $29bn US-Japan chip maker merger

US firms Weil Gotshal & Manges and Jones Day have picked up key roles on the merger between US semiconductor equipment maker Applied Materials and Japanese rival Tokyo Electron.

The all-share deal will create an electronics manufacturer with a market capitalisation of $29bn.

Weil Gotshal acted for Applied Materials, fielding Silicon Valley M&A partner Keith Flaun, who is the client relationship partner. The US company also instructed Japanese firm Mori Hamada & Matsumoto, led by Tokyo corporate partner Atsushi Oishi, and Dutch firm De Brauw Blackstone Westbroek, led by Amsterdam corporate partner Ton Schutte, to advise it on the transaction.

Tokyo Electron was represented by international counsel Jones Day, with Dallas partner Scott Cohen leading its team, and Japanese advisor Nishmura & Asahi, led by Tokyo corporate partner Masaki Noda. Tokyo Electron is a long-standing Jones Day client. Last year Cohen led the firm’s advice on the company’s $252m acquisition of FSI International.

The combined company will have dual headquarters in Tokyo and Santa Clara, will be listed on the Tokyo Stock Exchange and Nasdaq, and will be incorporated in the Netherlands.

“This deal is a continuation of the trend where, especially in a merger of equals of large global companies, there is a top holding company in the Netherlands,” said Shutte.

Publicis Omnicom (29 July 2013), as well as CNH Industrial are other companies that have recently chosen the neutral territory of the Netherlands for their new holding companies.