U.S. President Barack Obama is poised to block the sale of German chip equipment maker Aixtron to China’s Fujian Grand Chip Investment Fund (FGC), Bloomberg reported, citing sources.
Obama, on Friday, is expected to uphold the Committee on Foreign Investment in the United States’ (CFIUS) recommendation that Aixtron’s sale to the Chinese investment fund be stopped, Bloomberg said, citing sources. http://bloom.bg/2geoLp4
Obama’s office could not be reached for comment immediately by Reuters outside regular business hours. In November, Aixtron said that the CFIUS told the company it would recommend that its pending takeover by Fujian be blocked.
The German firm said CFIUS, which reviews deals that may be national security risks, had told the chip equipment maker that it plans to recommend to the U.S. president that the deal be blocked due to security concerns, and that it had advised the companies to drop the deal.
The only time CFIUS had formally stopped a deal was in 2012, when it obtained a presidential order ordering a small Chinese company, Ralls Corp, to sell a wind farm in Oregon because the farm was near a training site used to test unmanned drones.
The German government, in October, withdrew its approval for the deal. The deal, announced in May, valued Aixtron at 670 million euros ($715.56 million). Aixtron and Fujian Grand Chip Investment Fund could not be immediately reached by Reuters for comment. ($1 = 0.9363 euros)