On February 7, the Chinese investment agency Beijing Jianguang Asset Management Co., Ltd. ("Jianguang Assets") and NXP Semiconductors announced that NXP Semiconductors' Standard Products Business Unit (Standard Products BU, "SP Business") is officially The completion of the delivery, the transaction amount of 2.75 billion US dollars (about 18.1 billion yuan). This marks the successful completion of the largest semiconductor acquisition case initiated by Chinese capital to date.
According to the agreement first announced in June 2016, the consortium is required to pay approximately $2.75 billion in funding for this business. Nexperia is now an independent operating company with global leadership in discrete devices, logic devices and MOSFETs, retaining all of the previous NXP business expertise, manufacturing resources and key talent.
NXP's standard products business is an industry leader in discrete devices, logic devices and PowerMOS, with a focus on providing semiconductor products to the automotive, industrial, computing, consumer and wearable devices markets. Upon completion of the transaction, NXP's Standard Products business unit will become an independent company called Nexperia, headquartered in Nijmegen, The Netherlands.
Rick Clemmer, NXP's chief executive, said: "This transaction will be a win-win for all parties involved. The transaction enables NXP to continue to focus on high-power mixed-signal products business, further promoting our wisdom. Life, security link's development strategy. After the establishment of the new company Nexperia, Jianguang Assets and Zhilu Capital will focus on global investment to support the further growth of standard products business, which will also benefit our customers."
Li Bin, Chairman of the Jianguang Asset Investment Review Committee, said: "We are very pleased to reach an agreement with NXP to acquire its standard products business, as well as the outstanding team and leading technology in the department. We will adopt prudent investment in R&D, production and customer service. To further strengthen the competitive advantage of the business unit in the global market. The strong background of Jianguang Assets in the financial industry and its many years of experience in the semiconductor and telecommunications fields will help the new company's management team achieve long-term development success. We will also continue to support the current labor conditions of employees in this business unit as employees are a vital part of the company's long-term development."
Zhang Yuanjie, Partner of Zhilu Capital Management, said: “We will fund Nexperia's global development strategy to help the company launch new products faster in key markets while ensuring that Nexperia's global customers and suppliers are not affected. Although Nexperia Products serve multiple markets, but in the future the company will focus more on the automotive industry and provide high-level solutions. At the same time, we will help Nexperia strengthen its fast-growing emerging markets with a strong network of relationships among industry leaders. Leadership in the middle."
Accelerate the integration of domestic electronics industryThe US White House has publicly published a report with a strong wording called "Ensuring the Leadership of US Semiconductors" in response to "the current state of the US semiconductor industry and China's active emergence as a 'threat' by important players in the global chip industry." The report, written by the outgoing President of the US President Barack Obama's Science and Technology Advisory Committee, has sparked widespread concern, and some even made predictions about the "China-US semiconductor trade war."
In this context, China Capital’s overseas M&A trip has also encountered unprecedented difficulties. Ziguang’s shareholding in Western Digital, Jinshajiang Capital’s acquisition of Philips Lighting Devices’ Lumileds, and Fujian Hongxin Investment Fund’s acquisition of Aixtron’s The obstruction of the relevant US departments has been defeated.
In addition, the foreign management bureau began to tighten the supervision of foreign exchange funds from the fourth quarter of 2016, and also added a lot of variables to the overseas acquisition of Chinese capital.
The success of Jianguang Capital's acquisition of NXP's SP business not only reflects the country's emphasis on the semiconductor industry, but also reflects the operational strength of Jianguang Assets.
However, with the increase in uncertainty in the future, it is expected that the difficulty of overseas mergers and acquisitions in 2017 will further increase. Chinese capital's participation in overseas mergers and acquisitions will be more cautious, and Jianguang Capital may also slow down the pace of overseas mergers and acquisitions.
Some insiders analyzed: "When the difficulty of overseas markets is intensifying, it will be a due diligence to turn to the domestic market. The next business focus of Jianguang Capital may be transferred from overseas markets to China.
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