German lighting manufacturers OSRAM (OSRAM) lighting business subsidiary “LEDVANCE” sale case, recently by the German government authorities review and release, and now again by the US Overseas Investment Committee (CFIUS) approved the consent of the next to the Chinese regulatory authorities Nodded, Mu Linsen and other Chinese capital is expected to complete the transaction as scheduled this year.
OSRAM announced in July 2016, its independent subsidiary LEDVANCE will be sold to the joint bidding team, including China LED packaging manufacturers Wood Linsen, China Strategic Investment Corporation IDG Capital, and Yiwu City, the capital of the capital operation center tripod, the amount of transactions Up to 400 million euros. After the German government took into account the transaction caused by the outflow of technology, endangering national security, and thus to block and restart the review process. bsm25gd120d2
After more than three months of review, because the process did not find any evidence that the national security and public order will pose a threat, the German authorities will issue a “no proof of harm” release, only in the United States CFIUS and the Chinese authorities approved Before the case there are still uncertain factors exist. However, according to “Reuters” (Reuters) quoted the OSRAM spokesman said that the case has recently been approved by CFIUS, is now approved by the Chinese regulatory authorities can be formally adopted.
The deal was originally expected to complete the transaction in 2017 fiscal year, once approved by the Chinese regulatory approval, it is expected to be completed as scheduled transactions, when OSRAM will officially out of its revenue 2 billion euros lighting business, the future will focus on development Car lighting, intelligent lighting, special lighting and other high-margin and high-tech threshold market.
After the acquisition to change the LED pattern?
OSRAM lighting of the acquisition finally dust ended. Led by IDG Capital, China’s LED manufacturers Mu Lin Sen and Yiwu state-owned capital operations center and other Chinese consortium, the cost of 400 million euros to buy the OSRAM lighting business LEDVANCE. TrendForce LED technology industry brand LEDinside (China LED Online) Research Association reported that Ouyang said that the acquisition of OSRAM lighting highlights the international manufacturers have to look from the prospects for poor prospects for the development of LED lighting, the Chinese mainland LED lighting Manufacturers are through cost advantages and government support, LED lighting market in the future continue to sit big. udz8812
According to LEDinside statistics, in 2015 the world’s general lighting output value reached 82 billion US dollars (excluding cars and other special lighting), including LED lighting output value of about 25.6 billion US dollars, the overall LED penetration has reached 31%. But also because of the LED lighting penetration continues to rise, coupled with intense LED lighting industry, leading to the international manufacturers have abandoned the original has been operating a hundred years of lighting business.
According to public information, as one of the world’s three major lighting companies OSRAM, business consists of five major components: CLB (traditional lighting and ballasts), LLS (LED lights and systems), L & S (lamps and solutions) (OSRAM) and Sylvania (Ximiannian), and covers about 150 countries of the huge Sales channels.
In Europe, for example, 2015 revenue of up to 6.1 billion US dollars, if deducted OSRAM Opto Semiconductors, and automotive and other special lighting applications, lighting and lighting systems business revenue reached 3.2 billion US dollars. Compared to the general lighting market size, OSRAM’s market share of about 3.8%, the world’s second place. However, the future Osram light source business LEDVANCE spin-off after the future OSRAM brand in the general lighting market share will be a significant decline. The overall company’s operating objectives will also be transformed to higher gross margin LED components, automotive and special lighting. You can see the lighting manufacturers have been abandoned in the past to grab the market share, into the high value-added areas of development strategy.
With the transaction, OSRAM and MURINSON also reached a strategic supply agreement, to be OSRAM’s LED chip plant in Malaysia began operation, MORINSON will be the annual order of OSRAM to buy a large number of LED chips. For OSRAM, the sale of light source business to the wood forest to ensure that the future of their own LED chip outlet. For the wood Linsen, the new LEDVANCE will use OSRAM’s patented chip, coupled with the cost of the advantages of LED packaging, and then Osram and Sylvania brand in the lighting market siege, will accelerate the development of Chinese manufacturers in the field of lighting Market share, resulting in a win-win synergies.
China’s foreign investment is facing the challenges of foreign investment With the country’s strong economic development, Chinese companies in foreign mergers and acquisitions are increasingly active in response to their growth and development needs. Due to the global financial crisis and the degree of economic development and other factors, the United States has always been the focus of these foreign investment activities in the market. However, some Chinese companies involved in aviation, defense, Internet technology and telecommunications are facing challenges in approving the approval of the US Foreign Investment Committee (CFIUS) when they plan to invest or acquire US companies.
Before the purple group of Western Digital investment, because the United States CFIUS obstruction ended.
As an inter-agency committee of the US government, CIUS is composed of representatives from nine federal agencies, including the Ministry of Defense, the State Department, the Department of Homeland Security, and is personally supported by the Minister of Finance. If a foreigner’s “acquisition and acquisition” makes the US company or its assets controlled by foreign countries, the President of the United States has the right to investigate the impact of these mergers on national security.
All along, CFIUS has been authorized to review and investigate these transactions. Intra-investment or acquisition transactions subject to CFIUS review include US company assets, products, services or technology transactions that are considered to cause national security concerns or involve US key infrastructure.
In general, any investment that exceeds 10% of a US company’s equity, voting control or voting rights may trigger CFIUS’s review, and what is a critical infrastructure definition for national security concerns Extensive, need to be determined as a case.
For the urgent need for the development of China’s semiconductor, CFIUS is the biggest obstacle to China’s capital overseas mergers and acquisitions
