He said he expected grow the firms together, whilst also making savings. "We think we are going to gain at least three points in market share by putting our companies together, and really be enabled to help our customers solve their high value problems faster and at lower cost," he said. "Of course, we also think we should be able to improve our performance in the supply chain and save money... we will work at saving money and creating efficiencies," he said. ( Read more : Applied Materials names new CEO; revenue skids 16% ) Applied Materials shares rallied 8 percent in afternoon trade in the U.S. on Tuesday following news of the deal. Tokyo Electron shares were up 13 percent in early trade in Asia on Wednesday. The deal is expected to close from the middle of next year. —By CNBC's Katie Holliday: Follow her on Twitter @ hollidaykatie