NKT's sale of Photonics unit in jeopardy
In June last year, NKT entered into an agreement to divest NKT Photonics to Photonics Management Europe S.R.L, a subsidiary of Japanese Hamamatsu Photonics K.K. A sale that is now in jeopardy.
Closing of the transaction was subject to regulatory approvals being obtained and over the past months, the sale has received a green light from authorities in Germany, the United Kingdom, and the United States.
However, on 2 May 2023, NKT received notification that the sale had been blocked under the Danish Investment Screening Act.
According to the Danish Investment Screening Act, the Danish Minister for Industry, Business, and Financial Affairs can refuse to authorise a foreign company's investment in Denmark, such as the Hamamatsu Photonics acquisition of NKT Photonics, if it "poses a threat to national security or public order in Denmark".
NKT writes in an update that it awaits Hamamatsu Photonics' response to the decision and, separately, the company evaluates its options considering the decision. NKT says that it deems it to be contractually "well protected against the situation."