21 November 2016

CFIUS advises US President to prohibit Grand Chip's takeover of Aixtron

Deposition equipment maker Aixtron SE of Herzogenrath, near Aachen, Germany says that the investigation period for the Committee on Foreign Investment in the United States (CFIUS) to review the tender offer by Grand Chip Investment GmbH (GCI) from a US national security perspective lapsed on 18 November.

CFIUS did not issue a close-out letter, but informed GCI and Aixtron that there are unresolved US national security concerns regarding the proposed transaction. It plans to recommend to the US President that the transaction be prohibited, based on its conclusion that there would be no reasonable way to mitigate the US national security risks perceived by CFIUS on the basis of the mitigation proposals submitted by the parties to date. As a consequence, CFIUS has recommended that 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 US President for decision in line with CFIUS statutes, under which the President must render his decision to block or allow the proposed transaction within 15 calendar days.

GCI and Aixtron say that they plan to continue to engage in further discussions to explore means of mitigation that may be amenable to CFIUS or the US President to resolve outstanding US national security concerns or to take alternative measures that could allow the parties to proceed with the transaction. GCI and Aixtron note that there are no assurances that CFIUS or the US President will entertain further dialogue with the parties or that they will be able to identify and agree to any mitigation or to take alternative measures that will allow the parties to proceed with the transaction.

See related items:

Aixtron returns to positive free cash flow in Q3, boosted by sales of AIX R6 system inventory

Germany withdraws clearance of Grand Chip Investment's takeover of Aixtron

Aixtron agrees €670m takeover by Fujian Grand Chip Investment Fund

See: Aixtron Company Profile

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