Osram recently announced the latest developments about the acquisition transaction of its LED general lighting business sales to a Chinese investment  consortium headed by IDG Capital.

In a statement issued to clients, LEDVANCE, the general lighting business arm of Osram stated that all transnational transactions of German companies had to go through regulatory processes before it can be approved. The multinational acquisition review protocol includes obtaining clearance from the Federal Ministry of Economic Affairs and Energy.

LEDVANCE acquisition process is still being pieced together and the process might be longer then intended. (Photo courtesy of LEDVANCE)

“While some media are speculating about the consequences, the ministry has confirmed that they are examining the deal in a standard procedure,” LEDVANCE stated. “We assume that the process continues as expected. We collaborate closely with all involved authorities and will inform you as soon as there is relevant news.”

German lighting giant Osram’s general lighting business LEDVANCE was acquired by a Chinese consortium headed by IDG Capital in late July, but the business transaction was abruptly halted by German authorities on Oct. 28, 2016 over unknown financial issues.

IDG and lighting partner Forest Lighting (also known as MLS) proposed to acquire Osram for EUR 400 million  (US $439.58 million), and the deal is expected to be delayed for another three to four months as German authorities review the resubmitted documents.

According to a source familiar with the matter, the German government asked the Chinese consortium to submit additional documents for review to prove the acquired general lighting business does not contain technology that might put national security at risk.

The German government has become more alarmed of Chinese companies acquiring its high tech companies over the past month, and its Economic Ministry proposed earlier last month for the EU to implement protective measures.