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© demarco dreamstime.com Business | January 22, 2016

Philips and GO Scale Capital terminate acquisition deal

Philips and GO Scale Capital have terminated the agreement under which a consortium led by GO Scale Capital would acquire an 80.1% interest in Lumileds.
Despite the efforts of Philips and GO Scale Capital to mitigate the concerns of the Committee on Foreign Investment in the United States (CFIUS), regulatory clearance has not been granted for this particular transaction.

”I am very disappointed about this outcome as this was a very good deal for both Lumileds and the GO Scale Capital-led consortium. This outcome does not, however, impact the fundamentals of the Lumileds business,” said Frans van Houten, CEO of Royal Philips. “Lumileds is a highly successful supplier of lighting components to the general illumination, automotive and consumer electronics markets with a strong customer base. We will now engage with other parties that have expressed an interest in exploring strategic options for Lumileds to pursue more growth and scale.”

The termination of the transaction with GO Scale Capital does not involve a break fee nor impact the separation process of the remaining Lighting business from Royal Philips, which is being an independent transaction.
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