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Germany's Aixtron says U.S. opposes China deal on security grounds

Staff Writer |
Chip maker Aixtron said that the investigation period for the Committee on Foreign Investment in the United States (CFIUS) to review the tender offer by Grand Chip Investment from a U.S. national security perspective lapsed on November 17.

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CFIUS did not issue a close-out letter, but rather informed GCI and Aixtron that, from CFIUS’ perspective, there are unresolved U.S. national security concerns regarding the proposed transaction.

CFIUS informed the parties that it plans to recommend to the U.S. President that the transaction be prohibited based on CFIUS’ conclusion that there would be no reasonable way to mitigate the U.S. national security risks perceived by CFIUS on the basis of the mitigation proposals submitted by the parties to date.

As a consequence, CFIUS recommended the parties request withdrawal of their notice and abandon the entire transaction.

Both, GCI and Aixtron have decided not to follow such recommendation as a result of which the matter has been referred to the U.S. President for decision in line with CFIUS statutes.

Under the CFIUS statute, the U.S. President must render his decision to block or allow the proposed transaction within 15 calendar days.

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