ANNOUNCEMENT 24 Oct 2016

In October 2016, the German Ministry of Economic Affairs and Energy informed AIXTRON SE that they had withdrawn its initial clearance certificate approving the takeover of the company by a Chinese company. The Chinese company later withdrew its bid.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The European Council on Foreign Relations (ECFR), Germany's turnabout on Chinese takeovers: https://www.ecfr.eu/article/commentary_germanys_turnabout_on_chinese_takeovers_7251
AIXTRON SE, press release of 24 October 2016, Withdrawal of Clearance Certificate and reopening of review proceedings by the Ministry of Economics pertaining to the takeover by Grand Chip Investment GmbH: https://www.aixtron.com/en/press/press-releases/AIXTRON%20SE%20Withdrawal%20of%20Clearance%20Certificate%20and%20reopening%20of%20review%20proceedings%20by%20the%20Ministry%20of%20Economics%20pertaining%20to%20the%20takeover%20by%20Grand%20Chip%20Investment%20GmbH_n894
BUNDESMINISTERIUM FÜR WIRTSCHAFT UND ENERGIE, Bundesminister Gabriel im Interview mit der Frankfurter Allgemeinen Sonntagszeitung u. a. zu CETA, 30 October 2016: https://www.bmwi.de/Redaktion/DE/Interviews/2016/20161030-gabriel-fas.html
UNCTAD, Investment Policy Monitor, Withdrawal of the approval of the acquisition of Aixtron by Chinese investors, 26 October 2016: http://investmentpolicyhub.unctad.org/IPM/MeasureDetails?id=3045&rgn=&grp=&t=&s=&pg=22&c=&dt=&df=&isSearch=false
The New York Times, Germany Withdraws Approval for Chinese Takeover of Aixtron, 24 October 2016: https://www.nytimes.com/2016/10/25/business/dealbook/germany-china-technology-takeover.html?_r=0

Inception date: 21 Oct 2016 | Removal date: open ended

FDI: Entry and ownership rule

On 21 October 2016, the German Ministry of Economic Affairs and Energy informed AIXTRON SE that they had withdrawn its initial clearance certificate issued on 8 September 2016 approving the takeover of the company by the Chinese company Fujian Grand Chip. The takeover is pending a review by the German authorities. 

According to the European Council on Foreign Relations (ECFR), the withdrawal followed the US Committee on Foreign Investment (CFIUS) raising security concerns in a review of the company takeover as AIXTRON has assets in the United States. ECFR here highlights that the concern relates to "Aixtron being a key supplier of certain Gallium nitride technologies, which are used by NATO defence contractors. The US blocked the Aixtrondeal last December and, while Germany halted the takeover to review, China withdrew its bid."

AFFECTED SECTORS

 
N/A