Applied Materials has called off its $9.4 billion acquisition of Tokyo Electron Ltd. after hitting a regulatory roadblock.
The companies said that they were told by the Department of Justice that there remained antitrust concerns about a deal that would have merged two of the world's biggest semiconductor industry suppliers.
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News of the planned buyout was announced in September 2013. Applied Materials' shareholders were to own about 68 percent of the new company, with Tokyo Electron's holding about 32 percent.
Applied Materials Inc., which is based in Santa Clara, California, said Monday that it had authorized the repurchase of up to $3 billion of its stock. The buybacks are set to take place over the next three years, starting in its fiscal third quarter.
Its shares fell more than 7 percent, to $20.18, in early trading.