Security Worries Led Germany to Question Chinese Takeover of Aixtron
October 25 2016 - 4:40AM
Dow Jones News
FRANKFURT—The German government reopened its review of a €670
million ($728.89 million) Chinese takeover of chip equipment maker
Aixtron SE because of security concerns, the buyer said on
Tuesday.
"Information…indicates the know-how of Aixtron also comprises
security-related technologies, in particular in the defense sector,
which could be revealed through the contemplated acquisition of
Aixtron," said Grand Chip Investment GmbH, the German unit of
China's Fujian Grand Chip Investment Fund LP.
Grand Chip said the withdrawal didn't mean its offer would be
terminated. Grand Chip bid €6 per share for Aixtron in May, and the
German government issued a clearance in early September. On Monday,
Germany's economics ministry confirmed that it withdrew the
clearance but declined to elaborate on the reason.
The proposed acquisition of Aixtron is part of a wave of Chinese
offers for German technology firms that has raised concern in the
government. Some of the targeted companies specialize in innovative
technologies important to industry, including the auto sector.
The offer period ended Friday, and final results will be
announced Oct., Grand Chip said. On Monday, it said it had secured
roughly 65% of Aixtron, well above the 50.1% threshold it set for
the deal to go forward.
Write to Sarah Sloat at sarah.sloat@wsj.com
(END) Dow Jones Newswires
October 25, 2016 04:25 ET (08:25 GMT)
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