China Warns U.S. Against Blocking Aixtron Takeover
03 December 2016 - 1:20AM
Dow Jones News
FRANKFURT—China cautioned U.S. President Barack Obama against
blocking the takeover of Germany's Aixtron SE by a Chinese
investor, insisting it was a "normal commercial" acquisition
despite national-security concerns about the deal.
Aixtron shares fell Friday on a media report that Mr. Obama
would uphold a decision by regulators to block the €670 million
($711 million) takeover of Aixtron by the German unit of China's
Fujian Grand Chip Investment Fund LP. In early afternoon trading in
Europe, the shares were down 5%, having earlier been 7% lower.
"Given that it's a normal commercial M&A, it should be
handled according to commercial principles and market rules," a
spokesman for China's foreign ministry said.
The German technology firm said last month it was informed by
the Committee on Foreign Investment in the U.S.—the agency that
vets global deals on national-security grounds—about unresolved
security concerns about the deal. Germany's economics ministry on
Oct. 21 withdrew approval for the deal, sparking a diplomatic spat
with Beijing.
Aixtron produces several high-tech products, but defense
analysts say China is particularly interested in its semiconductor
technology. Aixtron counts a range of manufacturers and defense
companies among its customers.
People familiar with the work of the CFIUS suspect that a new
semiconductor technology based on gallium nitride, or GaN, may be
the focus of security concerns.
U.S. officials weren't immediately available for comment.
A spokesman for Germany's economics ministry said U.S.
proceedings were separate to its own review of the deal.
A spokesman for Aixtron said the company expected a decision to
be announced Friday, but had so far received no further information
from U.S. officials.
Germany has been the top European destination for Chinese
investors in 2016. Chinese companies have bought German companies
at the rate of about one a week since January, according to data
provider Dealogic. Chinese companies have spent over $11 billion on
German companies this year, eclipsing the previous record of $2.6
billion in 2014.
Andrea Thomas in Berlin contributed to this article.
Write to Josh Chin at josh.chin@wsj.com
(END) Dow Jones Newswires
December 02, 2016 09:05 ET (14:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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