Status: Presidential Order Partially Prohibiting Transaction

Acquirer: Fujian Grand Chip Investment Fund LP (China); Zhendong Liu (China)

Acquired: Aixtron SE (Germany)

Value: Approximately €670 million

Industry: Semiconductors

Late in the evening on Friday, December 2, the White House published the text of a “Presidential Order – Regarding the Proposed Acquisition of a Controlling Interest in Aixtron SE by Grand Chip Investment GMBH.” (The White House, Press Release and Text of Presidential Order, Dec. 2, 2016.) According to the Presidential Order, the President blocked the transaction as it relates to the U.S. business of Aixtron SE (defined as “Aixtron US” in the Order). (See id.) Aixtron SE is a German technology company that has a pending takeover offer by a subsidiary of Grand Chip Investment GMBH, a Chinese owned entity. (See our previous post on Aixtron Presidential Review, Nov. 21, 2016.) The Presidential Order requires the parties to “permanently abandon the proposed acquisition of Aixtron US not later than 30 days after the date of this order” and to “certify in writing to CFIUS that such termination has been effected in accordance with this order and that all steps necessary to fully and permanently abandon the proposed acquisition of Aixtron US have been completed.” (Presidential Order.) The parties earlier reported that the CFIUS would “recommend to the U.S. President that the transaction be prohibited.” (See our above-referenced blog post on Aixtron Presidential Review, Nov. 21, 2016.)