Sanan Optoelectronics (600703) announced today that its wholly-owned subsidiary acquired 100% of GCS HOLDINGS, INC. (hereinafter referred to as "GCS") with its own monetary fund of US$226 million and failed to obtain the US Foreign Investment Committee (CFIUS). Approved.
GCS was established in Torun, California, USA, and is listed on the Taiwan Securities Counter Trading Center (TPEX). The acquisition is subject to approval by the government.
According to the agreement, Xiamen Sanan Integrated Circuit Co., Ltd. and GCS terminated the “Consolidation Agreement and Plan†signed by both parties, and neither party has any liability for breach of contract and bears the cost of default.
In view of the fact that both parties are engaged in the development and manufacture of wafer production processes, a consensus has been reached on cooperation, and the two parties signed a Memorandum of Understanding to achieve a win-win goal. The two parties decided to jointly fund the establishment of a joint venture company with a focus on consumer electronics and mobile device manufacturing processes, including mobile phone RF, filters, optical communication chips, power management and new technology development.
The two parties will discuss the details of the establishment of the joint venture company immediately after the signing of the memorandum agreement, including but not limited to the joint venture feasibility study report, joint venture contract and joint venture company charter, business cooperation model, joint venture company site selection, production Lease or construction of the plant. After the two parties sign the formal joint venture contract, the company will fulfill its information disclosure obligations in a timely manner in accordance with the relevant laws and regulations.
GCS (F-Huanyu), which was established in California, although the merger is based on the development of communication components, but its application of technical products involves the US defense and military industry. Therefore, it is believed that the reason for the merger of Sanan is likely to have national defense considerations. Previously, the market expects this merger to be severely reviewed by CFIUS in the United States, and even feared that the case was rejected due to US national security issues.
The US CFIUS has blocked the Chinese M&A case as a precedent. Previously, Philips sold its Lumileds business unit for LED lighting components. In October 2015, CFIUS blocked China’s Jinshajiang Venture Capital Bank on the grounds of national security concerns. Leading Go Scale Capital acquired an 80.1% stake in Lumileds, and in January the following year, Philips announced a break in the deal between Lumileds and Go Scale Capital.
GCS was established in Torun, California, USA, and is listed on the Taiwan Securities Counter Trading Center (TPEX). The acquisition is subject to approval by the government.
According to the agreement, Xiamen Sanan Integrated Circuit Co., Ltd. and GCS terminated the “Consolidation Agreement and Plan†signed by both parties, and neither party has any liability for breach of contract and bears the cost of default.
In view of the fact that both parties are engaged in the development and manufacture of wafer production processes, a consensus has been reached on cooperation, and the two parties signed a Memorandum of Understanding to achieve a win-win goal. The two parties decided to jointly fund the establishment of a joint venture company with a focus on consumer electronics and mobile device manufacturing processes, including mobile phone RF, filters, optical communication chips, power management and new technology development.
The two parties will discuss the details of the establishment of the joint venture company immediately after the signing of the memorandum agreement, including but not limited to the joint venture feasibility study report, joint venture contract and joint venture company charter, business cooperation model, joint venture company site selection, production Lease or construction of the plant. After the two parties sign the formal joint venture contract, the company will fulfill its information disclosure obligations in a timely manner in accordance with the relevant laws and regulations.
GCS (F-Huanyu), which was established in California, although the merger is based on the development of communication components, but its application of technical products involves the US defense and military industry. Therefore, it is believed that the reason for the merger of Sanan is likely to have national defense considerations. Previously, the market expects this merger to be severely reviewed by CFIUS in the United States, and even feared that the case was rejected due to US national security issues.
The US CFIUS has blocked the Chinese M&A case as a precedent. Previously, Philips sold its Lumileds business unit for LED lighting components. In October 2015, CFIUS blocked China’s Jinshajiang Venture Capital Bank on the grounds of national security concerns. Leading Go Scale Capital acquired an 80.1% stake in Lumileds, and in January the following year, Philips announced a break in the deal between Lumileds and Go Scale Capital.
Cixi Congfeng Fluorine Plastic Co.,Ltd , https://www.cfptfeseal.com