The Dutch-based electronics company Philips says that its sale of a sub-company called Lumileds for $3.3 billion is now being scrutinized by a group called the Committee on Foreign Investment in the United States.” According to the Philips third-quarter results, the CFIUS has “expressed certain unforeseen concerns” which made the sale of Lumileds uncertain.
Lumileds manufactures LEDs and car components, and also owns many LED patents.
Philips is selling an 80.1 percent stake in Lumileds to a consortium of mostly investors from China. The consortium is called Go Scales and is made up of GSR Capital, Nanchang Industrial Group, and Asia Pacific Resource Development, all of which are based in China.
The sale was announced in March and is part of the company’s plan to better concentrate on consumer goods and its medical technology business.
Philips said that it will “continue to engage with CFIUS and will take all reasonable steps to address its concerns” but did not give any details about what those concerns are and in what way they will be engaged.
“Our operational performance continues to strengthen, despite deteriorating macro-economic conditions in a number of markets, most notably China,” said Philips chief executive Frans van Houten.