[Text / Gaogong LED Xu Chaopeng] On the evening of October 26, according to Reuters news, the Dutch Philips Group warned that its plan to sell the Lumileds lighting department to the Chinese consortium for $3.3 billion may be blocked because the US authorities use national security. For the opposition to this deal.
As the world's leading lighting equipment manufacturer, Lumileds announced in March this year that it will sell 80% of its equity to Go Scale Capital, an investment fund led by GSR Ventures. They are seeking to acquire technology assets in overseas markets.
“This transaction is part of a two-step plan by Royal Philips, which aims to exit the lighting business and focus on medical devices such as medical scanners and consumers such as coffee machines and electric shavers. Lifestyle products." According to industry insiders.
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Royal Philips said that the company is preparing to list the remaining lighting business IPOs, and the plan to divest these two businesses is still on track.
But the original plan was disrupted, and Philips said on Monday that the deal was unexpectedly opposed by the US Foreign Investment Commission (CFIUS), which has oversight of Lumileds' subsidiary in San Jose, California.
It is understood that the US Foreign Investment Commission (CFIUS) is a federal government inter-departmental review agency led by the US Treasury, including the US Department of Justice, the Department of Homeland Security, the Ministry of Commerce, the State Council, the Ministry of Defense, the Department of Energy and other nine government departments. The committee has the power to review foreign transactions that control US companies. At the same time, Lumileds' sales and earnings are mostly from its automotive lighting business, but the company is also developing light-emitting diodes (LEDs) in San Jose and has a portfolio of lighting patents.
“Lumileds' business in the US market includes manufacturing and R&D facilities. It is unclear what type of issues the US Foreign Investment Committee is worried about. The committee reviews international M&A transactions based on US national security concerns. US technology industry M&A transactions involving Chinese acquirers are often subject to more rigorous scrutiny,†the industry source said.
It is reported that the US Foreign Investment Committee is currently conducting an extension investigation on the transaction of a Chinese investor consortium plan to acquire the chip manufacturer Integrated Silicon Solution. Earlier this year, Tsinghua Unisplendour tried to buy Micron Technology for $23 billion, but the deal was ultimately unsuccessful, and according to sources familiar with the situation, some of the reasons for the breakdown of the negotiations were expected. This transaction is difficult to obtain approval from US regulators.
"The opposition of CFIUS is completely unexpected. After all, we are only producing LEDs for simple lighting purposes, but our Royal Philips Group will also try to calm the concerns of the committee and still believe that the transaction will be completed successfully." Philips CEO Marriott Frans van Houten said in an interview with foreign media.
Moreover, Marriott also said that despite the more challenging economic conditions (especially in the Chinese market), Royal Philips' operating performance is still growing, and they also maintain sufficient confidence.
According to the data, Royal Philips' third-quarter results exceeded analysts' previous expectations. The company's net profit for the quarter was 324 million euros (about 357 million US dollars), compared with a net loss of 103 million euros in the same period last year. $114 million). Revenue was 5.8 billion euros (about 6.4 billion US dollars), an increase of 12% compared with 5.2 billion euros (about 5.7 billion US dollars) in the same period last year. Excluding restructuring expenses and other special items, EBIT reached 570 million euros ($630 million) in the third quarter, compared to 474 million euros (approximately 524 million) in the same period last year. USD).
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