Applied Materials and Tokyo Electron make equipment for the production of semiconductors, flat panel displays and solar panels.
Mike Splinter, executive chairman of Applied Materials, told CNBC that he was confident the merger would not face regulatory hurdles.
(Read more: AMAT confident Tokyo Electron deal will be approved)
Analysts said that although there were some risks associated with merging two companies from two different corporate cultures, the move was probably the right one.
"We do like the deal, we think it makes sense," said David Dietze, president and chief investment strategist, Point View Wealth Management, in New York.
"There will be lots of costs to be squeezed out so there are some risks. You have the conservative Japanese and the swash-buckling Americans, but I do think it is a good match," he added.
(Read more: Are Japan's stocks ready to storm higher?)
Patrick Ho, an analyst at the brokerage Stifel Nicolaus, added: "[What works] in this deal's favor is that Tokyo Electron has been progressive in recent years, acquiring smaller U.S. companies."
"And the leadership team at Applied Materials is well respected in Japan and Asia. So while integration is a concern, it is something that I think can be done," Ho said.
—By CNBC.Com's Dhara Ranasinghe; Follow her on Twitter @DharaCNBC