AMSTERDAM—Royal Philips NV said Friday it has terminated the planned sale of its lighting components and automotive-lighting unit to a Chinese investor because of regulatory concerns in the U.S.

The Dutch electronics group said the Committee on Foreign Investment in the U.S., or CFIUS, didn't clear the planned disposal of an 80% stake in its Lumileds business despite "extensive efforts" to mitigate its concerns. Chief Executive Frans van Houten said he was "very disappointed" about the committee's decision and that Philips will now engage with other potential buyers who have shown an interest in the business.

In March, Philips agreed to sell the stake to Go Scale Capital, which is an investment fund led by Chinese venture-capital firm GSR Ventures. The deal valued the business at $3.3 billion and was an important step for Philips in its plan to exit its lighting activities. The Dutch company is currently preparing to dispose of its remaining lighting business through a listing or a sale.

Philips didn't say what type of concerns were raised by CFIUS, which reviews international transactions on national security grounds and has increased scrutiny of technology deals in the U.S. involving Chinese buyers. The Lumileds business in the U.S. comprises manufacturing as well as research-and-development facilities.

Write to Maarten van Tartwijk at maarten.vantartwijk@wsj.com

(END) Dow Jones Newswires

January 22, 2016 03:25 ET (08:25 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
Koninklijke Philips NV (NYSE:PHG)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Koninklijke Philips NV Charts.
Koninklijke Philips NV (NYSE:PHG)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Koninklijke Philips NV Charts.