Chinese group blocked by Trump announces United Kingdom chip-maker buyout

Cornelia Mascio
Settembre 23, 2017

According to reports late on Friday, Sept. 22, Imagination, a chip maker, will be acquired for about £550 million ($743.8 million) by Canyon Bridge Capital Partners, a private equity fund backed by China Venture Capital Fund Corp.

Canyon Bridge said it would pay 182p a share for Imagination - a 42% premium on its closing price on Friday. But the purchase is contingent on Imagination divesting USA chip designer MIPS, which Imagination had bought in 2013, the two companies said in a joint London stock exchange filing, adding that the takeover would not result in job cuts.

The move represents a bounce back by Canyon Bridge, which this month had its planned $1.3 billion acquisition of Lattice Semiconductor, an... On Sept. 13, President Donald Trump issued an order blocking the deal following the recommendation of the Committee on Foreign Investment in the US, an interagency panel led by the Treasury Department. It was not clear if the divestment would be subject to a review by CFIUS since Tallwood has offices in both California and China. Canyon Bridge was founded with capital originating from China's central government and had indirect links to Beijing's space program. Ltd., a Chinese corporation owned by Chinese state-owned entities.

Imagination, whose graphics power Inc's iPhone, licenses graphics and video-processing technology to semiconductor companies. The news, first reported today by the Financial Times, comes almost six months after Apple, Imagination's biggest customer, announced that it would no longer require the company's services.

Currently Imagination and Apple are in a legal battle over royalties.

Lattice, on the other hand, makes chips known as field-programmable gate arrays, which let companies put their own software on silicon chips for different uses.

It does not sell its chips to the military in the US, but it largest two rivals Intel Corp's Altera and Xilinx make chips that are used in USA military technology. In the past two years, the Chinese government has set aside at least 350bn yuan (£39bn) to invest in new technologies.

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