German Withdraws Approval of Chinese Takeover of Aixtron
October 24 2016 - 5:10AM
Dow Jones News
FRANKFURT—Germany's economics ministry has withdrawn its
approval of a €670 million ($728.89 million) Chinese takeover of
Aixtron SE, the company said, the latest sign of government alarm
about a wave of Chinese takeovers.
Aixtron said on Monday the economics ministry withdrew clearance
for Grand Chip Investment GmbH's takeover of the German
chip-equipment manufacturer. The buyer is the German unit of
China's Fujian Grand Chip Investment Fund LP.
Aixtron said the ministry would reopen its review of the offer.
It didn't provide further details.
The company's shares were trading down 7.8% at €5.40 around 0800
GMT on Monday, in response to the withdrawal of the takeover
approval.
The ministry originally cleared the deal in early September,
after Grand Chip bid €6 per share for Aixtron in May. A spokesman
for the economics ministry wasn't immediately available for
comment.
The planned purchase of Aixtron is part of a wave of Chinese
acquisitions of German technology firms. One of the larger
transactions was Midea Group's $5 billion bid for Kuka AG, which
makes robotics systems for the auto and aerospace industries. In
response to that deal, the economics ministry proposed putting
together a European consortium to bid for Kuka, rather than see it
go to Midea. A consortium never materialized and Midea completed
its $5 billion takeover this summer.
Chinese companies have bought German companies at the rate of
about one a week since January, according to data provider
Dealogic. By early October, Chinese companies had spent around $11
billion on German companies this year—far exceeding the previous
record of $2.6 billion in 2014.
(END) Dow Jones Newswires
October 24, 2016 04:55 ET (08:55 GMT)
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