(Reuters) – Aixtron SE’s takeover by China’s Fujian Grand Chip Investment Fund may soon be on the list of deals called off due to increased U.S. regulatory scrutiny.
The Committee on Foreign Investment in the United States (CFIUS) has recommended that the 670 million-euro deal be blocked due to security concerns.
The CFIUS, that examines deals to determine the effect on national security, has targeted Chinese companies aggressively pursuing acquisitions in the United States and has already derailed several high-profile deals.
Following are few deals that have come under the regulator’s scrutiny over the years and were abandoned.
— CFIUS blocked Philips’ $3.3 billion proposed sale of lighting unit to a consortium of Asian buyers, citing the U.S. government may be troubled by the prospects of a Chinese company acquiring advanced technologies to make LED lights.
— China’s Unisplendour Corp Ltd <000938.SZ> scrapped a $3.8 billion investment in Western Digital Corp after CFIUS said it would investigate the transaction.
— China’s Tsinghua Unigroup Ltd abandoned its offer to buy Micron Technology Inc after the Boise, Idaho-based chipmaker said the deal was not realistic because U.S. authorities would block the deal due to national security concerns. (http://reut.rs/2gV4KnC)
— Rosneft, headed by Igor Sechin, a long-standing ally of Russian President Vladimir Putin, terminated its acquisition of Morgan Stanley’s oil trading business because of the refusal by U.S. regulators to grant clearance. (http://reut.rs/2gh2o2p)
— President Barack Obama blocked Ralls Corp, a privately owned Chinese company, from building wind turbines close to a navy military site in Oregon due to national security concerns, and the company said it would challenge the action in court. (http://reut.rs/2guMS5W)
— China’s Huawei backed away from its acquisition of U.S. server technology company 3Leaf’s assets, bowing to pressure from a U.S. government panel that had suggested it should divest the assets. (http://bit.ly/2gUDSnz)
(Compiled by Sweta Singh, Diptendu Lahiri and Nikhil Subba in Bengaluru; Edited by Shounak Dasgupta)