The impact of the U.S. government's case against Lumileds sale and change

The United States government earlier review of Holland PHILPS Corp. (Philips) to sell its Lumileds LED stake to China Dachang capital based in Jinsha River (GO Scale Capital) that has experienced significant changes, the Committee on foreign investment in the United States (Committee on Foreign Investment in the United States, referred to as CFIUS) still have concerns about the transaction, and therefore PHILPS Jinsha River the suspension of trading, the subsequent market triggered a shock, but also for different manufacturers struggle between and competition produced new change.

Research firm LEDinside said the U.S. government is prevented Lumileds from selling 80% shares to Jinsha River led investment team, the investment team will have the opportunity to integrate Lumileds in LED chip, auto LED, lighting market application of hard and soft power, the investment in the collocation of green energy industry layout, create more value, but now the deal collapsed, the future of Lumileds, re sold to other companies or investment team, as well as the acquisition of other LED manufacturers, with better price to sell out the possibility.

LEDinside also pointed out that the U.S. government move, also let the other under the table is still in negotiations of the American Technologies Inc, including LED and other American manufacturers Chinese capital, mainland companies equity transaction proposal, is also facing the problem of breaking. Whether it is the LED American manufacturers to make manufacturers in mainland capital shares, or the sale of buildings and other relevant technical movements, are likely to lead to CFIUS's concerns, but there is no way to obtain approval, even in the stage of negotiations on the choice of trading up.

LED manufacturers outside the mainland manufacturers, Lumileds does not sell equity, or other U.S. LED manufacturers have not been shares of mainland manufacturers, there are other different levels of influence.

The next Lumileds flowers who may be outside the mainland manufacturers buyers back to earlier trade rumors, Korean manufacturers have shares Lumileds, car tickets and key patent LED LED, or Taiwan manufacturers to expand the sea, whether by shares or shares, have become possible options.

CFIUS treatment may also represent the policy of the U.S. government in a ring, that is the key technology and national security technology, cutting-edge technology related products, output or sold to overseas sellers, may need more careful review of possible CFIUS release.

Have a sale or have been completed transactions of American science and technology and LED manufacturers, have been released and not and national security related, but CFIUS believes that the completion of the transaction is acceptable, their standard of review, the future will be the focus of the industry.

The next few months, as well as the German giant OSRAM to spin off LEDVANCE lighting business after the sale, LEDVANCE lighting in terms of science and technology and the national security association may be relatively small, but the value of the brand and marketing experience, may be to buy the Asian manufacturers very want, let us wait and see the subsequent development.

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