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Global Times: The U.S. Blocked China’s Acquisition of U.S. Company again

Global Times recently reported that the U.S. Committee on Foreign Investment in the United States (CFIUS) once again blocked the deal for China’s Hubei Xinyan Investments to acquire the U.S. semiconductor test equipment vendor Xcerra. It seems the U.S. government continues to worry about Chinese companies. CFIUS blocked the US$580 million acquisition on the basis of the funding sources being “supported by the Chinese government.” Hubei Xinyan reached the merger agreement with Xcerra in April 2017. Now Xcerra, headquartered in the state of Massachusetts, has ended the agreement following the CFUIS rejection. Xcerra’s CEO told the media that his company tried its best to obtain the approval but “apparently” the Committee did not intend to give the green light. Last September, CFIUS also rejected a $1.3 billion Chinese acquisition deal in the semiconductor industry. The CFIUS approval process has been getting slower and more and more Chinese investment projects are on hold.

Source: Global Times, February 23, 2018