FRANKFURT Feb 11 German lighting group Osram
has received approval from a U.S. agency for the 400
million euro ($425.52 million) sale of its LEDvance lamps unit
to a consortium of Chinese bidders, a spokesman said, bringing
the deal closer to completion.
The Committee on Foreign Investment in the United States
(CFIUS), a government panel that scrutinizes transactions over
possible security concerns, gave its backing for the deal late
on Friday, the spokesman said on Saturday.
A U.S. approval was needed as parts of the business of
LEDvance, Osram's largest unit, are based in the United States,
a company spokesman said.
The approval from CFIUS comes days after the U.S. agency
told German chipmaker Infineon Technologies and U.S.
LED lighting maker Cree Inc that Cree's $850 million
sale of its Wolfspeed Power unit to Infineon might not go ahead
because of security concerns.
Osram agreed last July to sell the renamed LEDvance unit
with 2 billion euros in sales and about 9,000 staff, to IDG
Capital Partners, Chinese lighting company MLS Co
and financial investor Yiwu State-Owned Assets Operation Center.
The Munich-based firm, listed on Germany's mid-cap index
MDAX, is still awaiting approval from the Chinese State
Administration for Foreign Exchange (SAFE), the last authority
to back the deal. It expects closing of the transaction in
fiscal 2017, the spokesman said.
($1 = 0.9400 euros)
(Reporting by Georgina Prodhan; Writing by Andreas Cremer;
Editing by Clelia Oziel)