China’s state controlled chipmaker Tsinghua Unigroup acquires French smart chip components maker Linxens for $2.6 billion

The deal is yet to be finalized since it has yet to get clearance from Linxens’s union, and regulatory approval from France and Germany.

According to 5 sources with direct knowledge of the matter at hand, Tsinghua Unigroup Ltd, China top state-controlled chip manufacturer has signed a deal with Linxens, a French smart chip components maker, for around $2.6 billion (2.2 billion euros).

According to sources, one of the reasons why the deal was not announced publicly despite the fact that it was reached over a month is that it is likely to be a key test for European regulators for Chinese investments in the region.

According to 3 sources, Tsinghua’s acquisition of Linxens from private-equity group CVC is still pending regulatory clearance from authorities in France and Germany. Furthermore, Linxens’ union also need to approve the deal.

Tsinghua and Linxens did not respond to requests for comment on the deal, which would be the first overseas investment by the Chinese firm in two years.

Tsinghua has already entered into a deal with four banks for a $1.75 billion (1.5 billion euro) bridge loan to fund its acquisition, said sources.

The deal marks Tsinghua’s first offshore investment since three Taiwanese chip makers, ChipMOS Technologies Inc, Powertech Technology Inc, and Siliconware Precision Industries Co, scrapped a plan to sell sh

The deal is yet to be finalised since it has yet to get clearance from Linxens’s union, and regulatory approval from France and Germany.

According to 5 sources with direct knowledge of the matter at hand, Tsinghua Unigroup Ltd, China top state-controlled chip manufacturer has signed a deal with Linxens, a French smart chip components maker, for around $2.6 billion (2.2 billion euros).

According to sources, one of the reasons why the deal was not announced publicly despite the fact that it was reached over a month is that it is likely to be a key test for European regulators for Chinese investments in the region.

According to 3 sources, Tsinghua’s acquisition of Linxens from private-equity group CVC is still pending regulatory clearance from authorities in France and Germany. Furthermore, Linxens’ union also need to approve the deal.

Tsinghua and Linxens did not respond to requests for comment on the deal, which would be the first overseas investment by the Chinese firm in two years.

Tsinghua has already entered into a deal with four banks for a $1.75 billion (1.5 billion euro) bridge loan to fund its acquisition, said sources.

The deal marks Tsinghua’s first offshore investment since three Taiwanese chip makers, ChipMOS Technologies Inc, Powertech Technology Inc, and Siliconware Precision Industries Co, scrapped a plan to sell share in the group totalling to $2.6 billion in 2016 and 2017, following their failure to get local regulatory approval in time.

In 2018, China spent $45.5 billion for acquiring assets in Europe while its investments in the U.S. dropped by 75% to $1.9 billion.

are in the group totalling to $2.6 billion in 2016 and 2017, following their failure to get local regulatory approval in time.

In 2018, China spent $45.5 billion for acquiring assets in Europe while its investments in the U.S. dropped by 75% to $1.9 billion.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s