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Chinese LED chip manufacturer Sanan Optoelectronics has decided to abandon its plan to acquire Dutch tech firm Lumileds Holding for $239 million after failing to obtain approval from the Committee on Foreign Investment in the United States (CFIUS). The committee determined that the proposed purchase would pose significant and unresolved national security risks for the U.S. As a result, Sanan and its investment partner submitted a formal request to withdraw their application for review on April 17, subsequently canceling the deal, according to the company’s announcement.
Despite multiple negotiations involving all parties and the CFIUS, the committee maintained that the transaction would present unavoidable security concerns for the United States. The company emphasized that this decision does not violate the existing share purchase agreement and does not cause any material negative impact on its financial health or ongoing operations. Sanan reaffirmed its commitment to expanding globally and strengthening its competitiveness in the high-end LED lighting industry.
Earlier, Sanan announced a strategic partnership with Malaysia’s Inari Amertron Berhad to jointly invest $239 million to fully acquire Lumileds, with Sanan holding a 75 percent stake. Lumileds’ operations include research and development headquarters in the U.S., as well as manufacturing facilities for high-grade LED packaging and production, primarily serving automotive and specialty lighting markets. Major clients include General Motors, Ford, Stellantis, and Tesla.
Lumileds specializes in mid- to high-end LED products for automotive lighting, camera flashes, and specialty applications like shopping centers, stadiums, and racetracks. The company maintains facilities and teams in Singapore and Malaysia, with business interests extending across Southeast Asia, Europe, and China.
Despite the failed acquisition due to geopolitical issues, Sanan’s stock rose by 2.3 percent to close at 13.65 Chinese yuan (equivalent to about $2) per share today. Meanwhile, the Shanghai stock index increased by 0.8 percent.
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