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December 5, 2016

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US veto not to affect Germany

GERMANY will not be affected by the decision of US President Barack Obama to block a Chinese company’s purchase of the US business of German chip equipment maker Aixtron, said a government spokesperson on Saturday.

“Although the US procedure should have been concluded, this will have no effect on the German procedure,” said Korbinian Wagner, spokesperson for the Federal Ministry for Economic Affairs and Energy (BMWi).

“The process is running, the result is now open, and we have to wait for the process,” Wagner was cited by German news media as saying.

The US Department of Treasury said in a latest statement that Obama issued an order directing China’s Fujian Grand Chip Investment Fund to “fully and permanently abandon” the proposed acquisition of Aixtron’s US business.

Obama’s executive order barring the Chinese firm from completing the takeover of a German company with American assets was one of the few instances in which a US president has blocked a transaction due to national security concerns.

In October, the ministry suddenly withdrew the clearance certificate for Grand Chip. The ministry then reopened the review of the 670-million-euro (US$715 million) deal after it was initially approved on September 8.

Aixtron has said scrapping the proposed deal would mean it would have to take action to balance income and costs, including potential job cuts.


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