Transaction difficult! Jinsha River can successfully mergers and acquisitions Lumileds?

(image: Da Zhi image)

According to science news reports, Holland Royal PHILPS Electronics (Royal Philips), LED lighting components Lumileds division and automotive lighting division before the spin off, and integrate them as an independent company, originally planned to sell 80.1% stake to investment fund Go Scale Capital, but due to regulatory issues by the Committee on foreign investment in the United States (CFIUS) block, fear that the deal to add variables.

PHILPS announced in March 31, 2015, LED lighting components Lumileds division and automotive lighting division will sell 80.1% stake, China Jinsha River venture capital (GSR Ventures) led by Go Scale Capital, the transaction valuation of about $3 billion 300 million, while PHILPS holds the remaining 19.9% stake.

According to "the Wall Street journal" (Wall Street Journals), "Reuters" (Reuters), "Bloomberg" (Bloomberg) and a number of foreign media reports, in early October 26, 2015, the Committee on foreign investment in the United States (Committee on Foreign Investment in the United States, CFIUS) for PHILPS and Go Scale Capital transactions there are still some unexpected problems, but this does not provide further explanation.

CFIUS is an interagency organization responsible for monitoring and assessing the impact of foreign investment on the national security of the United states. PHILPS said that the company's management will take a variety of reasonable ways to continue to negotiate with CFIUS to lift doubts. But PHILPS also does not mince words, can not determine whether the transaction can be successfully reached.

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