Friday, January 22, 2016

Bounced Philips Deal: America playing world police for takeovers – FAZ – Frankfurter Allgemeine Zeitung

Philips illuminates the New York’s Times Square on New Year

In the negotiations on the multi-billion dollar sale of its Lumileds to China of the Philips Group is evidently been put under political pressure. According to information of F.A.Z. Also, at least one American Society for the division was interested. The negotiations had been held a long-standing, the bid from overseas, however, was significantly lower than that of China, reported a areas addressing the sales process manager. It should have gone to a difference of about half a billion dollars.

Shortly after the official end for the American bidders have the supervisory authority, the Committee on Foreign Investment in the United States (CFIUS), the Philips indicated managers that when sold on the Chinese bidders import bans for the recent Philips products threatened.

The threat of blockade in North America had been underestimated in Amsterdam and Eindhoven in a sale at GO Scale Capital, admitted Manager on. Philips and the CFIUS rejected a comment.

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Philips had in March, division, the automotive lamps and LED parts manufactures, mostly to a consortium led by the Chinese investor Go Scale Capital for sale. It was about a good 80 percent of the shares. But that CFIUS objected. That’s why Philips said on Friday from the project. Lumileds operates a large facility in San Jose and was created in 1999 as a joint venture between Philips and Agilent

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CFIUS takes acquisitions from the standpoint of “national security” under the microscope. It is sometimes suspected to prevent takeovers in order to strengthen the domestic industry. The Panel has examined according to the latest available figures in 2014 a total of 156 acquisitions due to potential safety concerns, significantly more than last year. The focus is on information and communication technology and the semiconductor industry

In 2015, the number of cases was by calculation of the law firm Freshfields on the highest or second highest level of the past 15 years. The geographical focus was, as in previous China. Freshfields partner Christoph Seibt speaks of “protectionist tendencies” in the United States, but also elsewhere. “What is the national interest, the countries decide for themselves,” he told the FAZ.

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