Recently, there have been many transactions of Chinese acquisitions and investment in US companies that have been aborted because of the US government's review.
The Committee on Foreign Investment in the US (CFIUS) raised media attention earlier this week that the inter-departmental agency temporarily suspended Broadcom Ltd. (Singapore-based Broadcom Ltd.) to acquire Qualcomm for $ 117 billion The plan of the company (Qualcomm Inc., QCOM).
In addition to the deal, CFIUS has also questioned the growing number of other deals in recent months, while the Trump administration is also trying to prevent the loss of technology and keep the U.S. economy on China and other rival countries And military advantage.
Here are a few transactions blocked by CFIUS:
- UQM Technologies Inc., a Colorado company that develops electric vehicle engines, said on Monday that China National Heavy Duty Truck Group Co. has cancelled its second round investment plan for UQM, citing CFIUS's deal Concerned. China National Heavy Truck Group Co., Ltd. currently holds a 9.9% stake in UQM, which is worth about US$5.1 million. According to the agreement reached by the two companies in August last year, after completing the second round of investment, China’s heavy trucks The shareholding of Group Co., Ltd. in UQM will rise to 34%. The two companies stated that they intend to resubmit the application to CFIUS.
-- Beijing Dabeinong Technology Group Co., 002385.SZ, abbreviated as Da BeiNong, cancelled plans last week to acquire Waldo Genetics, a Nebraska-based breeding pig company. Claimed to have failed to obtain U.S. government approval. In March 2017, Bethanong reached an agreement to acquire Waldo for US$16.5 million. The reporter could not immediately contact Waldo, an unlisted company.
--Xcerra Co. (XCRA), a semiconductor and electronics test equipment provider headquartered in Norwood, MA, terminated the sale to a Chinese consortium last month on the grounds that it was difficult for CFIUS to approve the $580 million deal. .
-- Ant Financial Services Group (Ant Financial Services Group) and MoneyGram International Inc. (MGI) announced in January that CFIUS refused to approve ants. Jinfu bought Speed Money with US$1.2 billion.
- In September last year, at the suggestion of CFIUS, Trump blocked the attempt of Canyon Bridge Capital Partners with Chinese government to acquire Lattice Semiconductor (LSCC) in Portland, Oregon.
-- The HNA Group has been working hard for CFIUS to approve its acquisition of a controlling stake in SkyBridge Capital for some time. SkyBridge Capital is an investment company owned by former White House consultant Anthony Scaramucci.
-- China Oceanwide Holdings Group's $2.7 billion purchase of U.S. insurance company Genworth Financial Inc. (GNW) is also waiting for CFIUS to release.
As China’s investment in the United States soared, the unease about China’s M&A transactions began to heat up during Obama’s administration and became even more intense after Trump took office. The recent review of Broadcom’s acquisition of Qualcomm marks a peak for this anxiety.
Some people in the U.S. Congress and government departments said that China’s investment in the United States may be conducted under the encouragement of the Chinese government, and may also receive government financial support. Given the economic and military competitive relationship between China and the United States, these investments may give rise to national security. Bring a very big risk.
If the Senate majority party whip John Cornyn and the Republican Congressman Robert Pittenger passed the bill put forward in November last year, the road to Chinese investment in the United States may become even more difficult. This motion will further strengthen CFIUS' external investment review, especially Review of transactions in Chinese companies' science and technology fields.
CFIUS is headed by the U.S. Treasury Department and usually does not disclose decision-making and operational details. The Ministry of Finance issued a statement saying that the law prohibits the Ministry of Finance from publicly disclosing information submitted by CFIUS, and stated that CFIUS focuses on national security issues in the evaluation.