Philips is having difficulty completing the sale of Lumileds, the division which makes LED lights.
The sale should actually have been finalised in the third quarter, but the American watchdog has raised objections. A partnership consisting of Go Scale Capital and a large Chinese investor is willing to pay 2.6 billion Euros for the division and its 8,300 employees, but the American authorities are making it difficult.
In a press statement accompanying the third quarter results, Philips wrote "The Committee on Foreign Investments in the US (CFIUS) has voiced certain concerns which were not anticipated".
A spokesperson refused to say which concerns the American authorities have. The Americans are usually more critical of investments involving Chinese capital. It is uncertain just when the sale will be completed.
Philips announced their intention, at the end of March, of selling 80 per cent of Lumileds to Go Scale Capital. That business division makes lamps for, among other, mobile phones and car headlights. At that time, the deal was expected to be closed by the end of September. That forecast was adjusted, three months ago, to the end of this year.
Source: Studio040
Translation: Lizzie Kean (LinkedIn)
