On the afternoon of July 25th, Beijing time, according to five people familiar with the matter, Tsinghua Unisplendour, the largest state-owned chip manufacturer in China, has signed an agreement to acquire the French smart chip component manufacturer Linxens. The purchase price is about 2.2 billion euros (about 2.6 billion US dollars). ).
People familiar with the matter said the deal was signed a month ago but has not yet been made public. The deal will be a key test for European regulators‘ position on China’s investment in the region.
Three people familiar with the matter said that Tsinghua Unisplendour’s acquisition of Linxens from the private equity group CVC is still awaiting approval from the regulatory authorities, noting that the deal requires approval from France, Germany and the company’s union.
An anonymous person said that the authorities did not expect to oppose the deal.
Both Tsinghua Unisplendour and Linxens commented on the deal. In addition, the deal will also become the first overseas investment by Chinese companies in the past two years.
According to three people familiar with the matter, Tsinghua Unisplend has reached an agreement with four banks to obtain 1.5 billion euros of transitional financing to finance the transaction. The main lender, Credit Suisse, also advises the seller.
Credit Suisse declined to comment.
The deal will become the first departure of Tsinghua Unisplendour after the three Taiwanese chip makers failed to obtain local regulatory approvals and had to cancel the $2.6 billion stock recovery plan for the group in 2016 and 2017 respectively. Shore investment.
According to Thomson Reuters data, China has spent $45.5 billion on European assets so far this year, more than double the level of previous years, while investment in the United States has fallen by 75% to just $1.9 billion.
Headquartered near Paris, Linxens has annual sales of 535 million euros and employs 3,500 people in nine plants worldwide. The company also has offices in China, Singapore and Thailand.
The official website shows that Linxens is not involved in the US market. The company specializes in the production of key communication connectors between smart cards and e-readers, as well as antennas and inlays for applications such as contactless payment, transmission and access.