<div id="readability-page-1"><div id="news-body">(Yicai) April 20 -- Chinese light-emitting diode chipmaker Sanan Optoelectronics has abandoned a plan to acquire Dutch technology company Lumileds Holding for USD239 million after failing to secure approval from the Committee on Foreign Investment in the United States.Since the CFIUS had determined that buying Lumileds would give rise to unresolvable US national security risks, Sanan and its investment partner submitted a request to withdraw the review application to the committee on April 17, thereby dropping the deal, the Xiamen-based company announced late on the same day.Despite multiple rounds of talks between all parties and the CFIUS, the committee still concluded that the transaction would pose unresolvable national security risks to the US, Sanan stressed.However, the termination does not breach the share purchase agreement, so it will not have a material adverse impact on Sanan's financial position or continuous operating capability, the company noted, adding that it will continue to firmly advance its internationalization to steadily enhance its global competitiveness in the mid-to-high-end LED lighting market.Sanan announced that it and Malaysia's Inari Amertron Berhad will jointly invest USD239 million to fully acquire Lumileds on Aug. 1, with the former holding a 75 percent stake.Lumileds has LED research and development headquarters and auto-grade LED packaging and mass production factories in the US, making the acquisition subject to review and approval by the local government. The firm counts General Motors, Ford, Stellantis, and Tesla among its customers.Lumileds is a mid-to-high-end LED products supplier focused on auto lighting, camera flashes, and specialty lighting, with its products also having high-end applications in shopping malls, stadiums, and racecourses, Sanan previously said. The company has plants and teams in Singapore and Malaysia, with its business covering Southeast Asia, Europe, and China.Shares of Sanan [SHA: 600703] closed 2.3 percent higher at CNY13.65 (USD2) apiece today despite its aborted acquisition attempt due to geopolitical reasons. The broader Shanghai stock market rose 0.8 percent.Editors: Tang Shihua, Martin Kadiev</div></div>

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Chinese chipmaker Sanan Optoelectronics has abandoned its USD239 million acquisition of Dutch firm Lumileds Holding after failing to secure US approval due to national security concerns. The Committee on Foreign Investment in the US (CFIUS) deemed the deal posed unresolvable risks. Despite the termination, Sanan stated it would not adversely affect its financial position and plans to continue enhancing its global competitiveness in the LED market. Shares of Sanan rose 2.3% to CNY13.65 following the announcement, while the broader Shanghai market increased by 0.8%.

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Chinese Chipmaker Sanan Drops USD239 Million Plan to Buy Dutch Tech Firm After Failing to Get US Approval