. 24/7 Space News .
Chinese firm abandons acquisition over US scrutiny
by Staff Writers
Beijing (AFP) Feb 25, 2016

A Chinese tech firm has abandoned a multi-billion dollar investment in an American hard-disk manufacturer, state media reported Thursday, after the plan came under scrutiny from US lawmakers.

Unisplendour Corp (UNIS) will rescind its $3.8 billion dollar offer for approximately 15 percent of California-based Western Digital, the Global Times reported.

The decision followed an announcement that the deal would be reviewed by the Committee on Foreign Investment in the United States (CFIUS), a group tasked with examining outside acquisitions for potential national security concerns.

The announcement triggered a clause that allowed UNIS, a subsidiary of state-owned Tsinghua Unisplendour Group, to withdraw from the deal, Western Digital said in a statement Tuesday.

CFIUS has increased its scrutiny of Chinese firms in recent years as capital increasingly flows from China into the US.

Growth in the world's second largest economy has waned in recent years, and Beijing has pushed local firms to look beyond the country's borders for deals that can both improve their balance books and strengthen their operations.

As a result, eye-popping acquisitions of US companies by Chinese firms have become increasingly common.

The Unisplendour investment would have given the company a seat on Western Digital's board and made it the largest shareholder. The company's core business is hard drives and other storage devices.

Last week, the Chinese firm HNA agreed to pay $6 billion for a Ingram Micro, a California-based tech company that distributes products for Apple and Microsoft.

And earlier this month, state-owned China National Chemical Corp. (ChemChina) offered $43 billion for Swiss pesticide and seed giant Syngenta, which, if completed, will be the biggest-ever overseas acquisition by a Chinese firm.

As the number of such deals has increased, so have reviews by US regulators.

Over the last three years, CFIUS has reviewed 68 Chinese acquisitions, more than any other country, according to a report from the committee to the US Congress. The UK held the number two spot with 45 reviews, followed by Canada with 40.

Bids in the manufacturing sector, especially in the category of "computer and electronic product", were most likely to receive scrutiny, it said.

In 2014, the committee rejected only one of the 147 deals that were notified of the review process the document showed.

Nevertheless, the heightened scrutiny has drawn complaints of unfairness from Chinese analysts.

Speaking to the Global Times, Huang Wei, an expert on economics at the Chinese Academy of Social Sciences said that the attention to Chinese companies "shows that the US does not trust China".







Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once

credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly

paypal only


Related Links
Space Technology News - Applications and Research

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Previous Report
Eternal 5D data storage could record the history of humankind
Southampton, UK (SPX) Feb 22, 2016
Scientists at the University of Southampton have made a major step forward in the development of digital data storage that is capable of surviving for billions of years. Using nanostructured glass, scientists from the University's Optoelectronics Research Centre (ORC) have developed the recording and retrieval processes of five dimensional (5D) digital data by femtosecond laser writing. Th ... read more

NASA chooses ASU to design and operate special satellite

Chinese scientists invent leak detection system for moon exploration

Aldrin recounts successes and challenges of historic space journey

Edgar Mitchell, astronaut who walked on Moon, dead at 85

Jarosite in the Noctis Labyrinthus Region of Mars

Trace Gas Orbiter and Schiaparelli are joined

Footprints of a martian flood

Russia plans return to Mars, Moon despite money woes

India plans to launch 60 space missions in 5 years

NASA Space Program Now Requires Russian Language

Tourists could soon benefit from direct flights to Baikonur Space Center

Virgin Galactic unveils new spaceship 16 months after deadly crash

Staying Alive on Tiangong 2

China Conducts Final Tests on Most Powerful Homegrown Rocket

Last Launch for Long March 2F/G

China aims for the Moon with new rockets

Send your computer code into space with astronaut Tim Peake

Black Mold Found in Cargo Prepared for ISS, Resupply Mission Delayed

Putting the Public in the Shoes of Space Station Science

Russians spacewalk to retrieve biological samples

Russian rocket engines ban could leave US space program in limbo

Launcher and satellite preparations continue for Ariane 5's mission with EUTELSAT 65 West A

JAXA Launches X-ray Astronomy Satellite

ULA Launches NROL-45 Payload for the National Reconnaissance Office

Longest-Lasting Stellar Eclipse Discovered

Astronomers take images of an exoplanet changing over time

First detection of super-earth atmosphere

Hubble Directly Measures Rotation of Cloudy 'Super-Jupiter'

New research introduces 'pause button' for boiling

Mystery of Dracula orchids' mimicry is unraveled with a 3-D printer

Shrinking 3-D technology for comfortable smart phone viewing

Modified laser cutter prints 3-D objects from powder

The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.