How many cases of Chinese-funded acquisition of overseas LED enterprises in 2016?

by:ALLTOP      2020-01-21
With the economic slowdown in Europe and the United States and the expansion of China's capital strength, Chinese-funded transnational acquisitions in the LED industry have occurred frequently in the past two years, taking this opportunity to win the core technologies and patents of foreign LED Enterprises, and improve their own technology, products and brand influence, and lock the dominant right of LED industry development in mainland China, which is a qualitative leap for domestic LED enterprises. With the economic slowdown in Europe and the United States and the expansion of China's capital strength, Chinese-funded transnational acquisitions in the LED industry have occurred frequently in the past two years, taking this opportunity to win the core technologies and patents of foreign LED Enterprises, and improve their own technology, products and brand influence, and lock the dominant right of LED industry development in mainland China, which is a qualitative leap for domestic LED enterprises. However, not every M & A case is smooth sailing, and not every M & A case can succeed. According to the data, for projects that merge, merge or both, the probability of final failure will be about 40 ~ Between 80. This means that compared with the initial strategic objectives, many mergers and acquisitions will be failed projects. What's more, for Chinese-funded acquisitions, there are many pressures and interferences, including obstruction from foreign governments and trade unions, which makes the success rate of Chinese-funded acquisitions lower. Below, Xiaoye will take a look at the case of Chinese-funded acquisitions in the LED industry this year. Chinese-funded acquisition of LED epitaxial chip manufacturer aisiqiang was rejected by Obama on December 8, China Hongxin investment fund announced yesterday that the acquisition offer for German chip company aisiqiang has expired and the trading conditions have not been realized, all previously purchased Axitron shares will be refunded. Aisiqiang is a German semiconductor equipment supplier and one of the only two companies in the world that can produce MOCVD equipment (The other is the American company VEECO). MOCVD is the key core equipment for LED epitaxial chip manufacturing. The German Federal Ministry of Economic Affairs approved the Fujian Hongxin fund to acquire the company on September 8 this year, but suddenly repented on October 24. Germany and the United States disclosed that the move was related to the intervention of the US intelligence department. The US intelligence department said that aisiqiang's technology can also be used in military industries such as satellites and radars. Northrop Grumman, a world arms dealer and an important partner of the US Department of Defense ( Northrop Grumman Corp. ), Is one of the customers of aisiqiang. Subsequently, the US foreign investment committee launched an investigation into the case and announced the results of the investigation on November 17 local time: the acquisition threatened US national security and suggested that the US president come forward to stop it. According to the corresponding regulations, Obama should finalize the final ruling on December 2, 15 days after receiving the proposal. Previously, Obama only vetoed one foreign investment during his term of office, that is, an executive order was issued in September 28, 2012 to prohibit Sany Heavy Industry from holding Lars Holdings (Ralls Corp) Acquisition of four wind farms near the US Oregon Naval training logistics base. The Chinese-funded acquisition of Osram was worried by the German trade union for fear of obstruction and the transfer of LED technology. For the alleged acquisition of Osram by Chinese-funded enterprises, before the German government intervened, germany's large industry trade unions organize metal industry unions (IG metall) The statement said that it will prevent the German lighting group Osram from being acquired by Chinese companies. The German trade union said that the organization will resolutely oppose any acquisition attempt in view of the negative consequences that the acquisition may have for Osram workers. He said that the potential acquisition should not only be seen from the perspective of shareholders, but also the impact on other stakeholders, especially the interests of employees must be properly considered. The German union branch said on its official website that Chinese investors have been buying Osram for some time. The criticism of this program is that China's interest is mainly focused on technical knowledge and related patents. In other words, after the acquisition, Osram's key expertise will face major risks, customers will be lost, and Germany as an investment destination will also be affected. The British 'Financial Times' quoted IG metall spokesman juntel as saying that the real concern is that any potential acquirer just wants to take away Osram's technology and transfer production to locations outside Germany. Chinese acquisition of Lumileds was rejected, or because of LED chip technology involved in military industry. On January 22, 2016, Philips announced that it would stop selling its lighting components and automotive lighting business to Chinese investors due to opposition from US regulators. Philips said that although the company has done a lot of work to try to eliminate the concerns of relevant regulatory authorities, it has not been approved by Philips to sell 80 shares of Lumileds. According to the data, Philips's Lumileds is a lighting equipment manufacturer. Its products include lighting components, general lighting, automotive lighting and mobile electronic equipment lighting. The company's business covers more than 30 countries. According to reports, an expert and another person involved in the transaction discussion revealed that concerns about China's ambition in the chip field were the main reason why US officials refused to approve the merger. However, industry insiders said that the US vetoed the deal not because it was worried about the pure LED chip technology field, but because LED chips belonged to the semiconductor professional technology field, if the chip technology is used in various precision electronic equipment and military fields, it is not conducive to the protection of its advantageous industries. Foreign governments and trade unions frequently prevent Chinese companies from overseas mergers and acquisitions, or worry about the leakage of their technical knowledge and related patents, or worry about the dismissal of their workers. In fact, for overseas acquisitions of Chinese-funded enterprises, as long as they are properly handled, they can also create a win-win situation. Blindly rejecting the acquisition will only make many loss-making enterprises face the risk of bankruptcy, while others will miss the development opportunity, which is not conducive to the development of enterprises and workers.
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