Philips' $3 billion Lumileds deal blocked by US

January 25, 2016 // By Peter Clarke
Philips' $3 billion Lumileds deal blocked by US
Royal Philips (Amsterdam, The Netherlands) has announced that a deal to sell an 80.1 percent interest in Lumileds, a vendor of LED based lighting, has been terminated, because of concerns within the Committee on Foreign Investment in the United States (CFIUS).

According to reports the concerns are about Chinese interests gaining too much control over US technology and markets. Philips said it is now engaging with other parties that have expressed an interest in the Lumileds business.

Philips states that both it and Go Scale Capital made extensive efforts to mitigate the concerns of CFIUS but without success.

Philips announced a plan to sell Lumileds LED components and automotive lighting business to a consortium led by Go Scale Capital on March 31, 2015. The deal had an enterprise value of $3.3 billion.

Go Scale Capital is a venture capital fund sponsored by GSR Ventures and Oak Investment Partners with offices in Beijing, Hong Kong and Silicon Valley and goal of scaling up investments in China to serve global markets.

Lumileds has operations in more than 30 countries and employs approximately 8,800 employees worldwide. In 2015, it generated sales of approximately $2 billion.

Philips said the termination of the deal with Go Scale Capital did not a break fee nor impact Philips' intention to separate the lighting business from Philips.

Related links and articles:

www.philips.com

News articles:

Philips offloads LED lighting components unit for USD2.8bn

New owners close in on Philips Lumileds


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