China's M&A boom clashes with US fears

US regulator blocks Sanan Optoelectronics's offer for Global Communication Semiconductors, striking another blow to Chinese companies amid an otherwise good year for outbound M&A.

China Inc’s hunger for foreign companies received another blow this week, after US regulators blocked Sanan Optoelectronics’ $226 million takeover of a California-based semiconductor company.

Sanan Optoelectronics was forced to cancel the buyout of Taiwan-listed Global Communication Semiconductors GCS three months after announcing the acquisition. The Committee on Foreign Investment in the United States CFIUS turned down the proposal, the company said in an exchange filing on Tuesday.

CFIUS, an inter-agency committee that reviews inbound transactions that could potentially threaten US national security, has been a bugbear for other Chinese companies hoping to close acquisitions in the US. It has...

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