S&P puts Lam on positive watch

Standard & Poor's said it placed Lam Research Corp.'s BB+ corporate credit rating on CreditWatch with positive implications.

The CreditWatch placement follows news that Lam Research will acquire Novellus Systems Inc. in a stock-for-stock transaction valued at about $3.3 billion or 1.125 shares of Lam Research for each share of Novellus.

S&P said it expects the proposed acquisition to improve the view of Lam Research's business risk profile, the agency said, as the company expands its leadership positions beyond its previously narrow business focus in plasma etch- and single-wafer clean segments of the semiconductor wafer-equipment addressable market.

Lam Research anticipates significant cost synergies as a result of the transaction, the agency added.

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