Philips $3.3-billion sale of Lumileds to Go Scale in doubt

[October 26, 2015]  AMSTERDAM (Reuters) - Philips said on Monday the sale of its $3.3-billion Lumileds business to Go Scale Capital was uncertain, due to U.S. government concerns.

Philips had announced in March an agreement to sell a stake of 80.1 percent in the business to Go Scale Capital, an investment fund of Asian private equity firms. But the Dutch company said on Monday the Committee on Foreign Investment in the United States (CFIUS) had expressed "certain unforeseen concerns" about the deal.

"Philips and Go Scale Capital will continue to engage with CFIUS and will take all reasonable steps to address its concerns, but given these, the closing of the transaction is uncertain," Philips said.

Lumileds comprises Philips' automotive lighting business and its LED components business. GSR Ventures, Oak Investment Partners, Asia Pacific Resource Development, and Nanchang Industrial Group all participate in Go Scale.

(Reporting by Toby Sterling; Editing by Clarence Fernandez)
 

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