US blockbuster deal involving China billion
For national security reasons, President Donald Trump blocked the acquisition of US chipmaker from a backed Chinese-backed fund.
China is short of the No. 1 race with the United States / India wanting to block China's billion dollar acquisition
Private equity fund - Canyon Bridge Capital Partners wants to buy Lattice Semiconductors. The deal is worth $ 1.3 billion, announced for the first time in November 2016.
However, "Considering national security, the president has issued a decree banning this deal," US Treasury Secretary Steven Mnuchin said in a statement yesterday. These risks include the "risk of transfer of intellectual property" to the Chinese-backed company and "the Chinese government's involvement in the transaction."
Canyon Bridge says that they are based in California. However, the website of the foundation is addressing in Beijing, and said "the initial investment for Canyon Bridge came from Chinese partners."
President Donald Trump fears national security because of deals involving China. Photo: AFP
Earlier, the US Foreign Investment Commission had proposed blocking the deal. This is a watchdog agency that can make foreign entities take control of an American company.
China's investment in the US has always been a sensitive issue. According to research firm Rhodium Group, China has poured 25 billion dollars into the US this year, through 83 deals.
Both Lattice and Canyon Bridge have confirmed the deal will boost US employment - a key issue with the current Trump administration. Canyon Bridge now has 300 employees in Oregon, Lattice said. And Canyon Bridge is committed to raising this number to 350 if the deal is approved.
In announcing yesterday, Canyon Bridge was "very disappointed" with Trump's decision. Because the deal is a "great" opportunity for Lattice and will "increase the ability to retain jobs in the United States." Lattice shares lost nearly 2% in the settlement session yesterday.
nguon : vnexpress.net