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US makes Emcore drop China fibre venture
30 June 2010
Security concerns mean the US government has stopped Emcore selling a controlling stake in its optical fibre business to a Chinese investor
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Emcore
China
Tangshan Caofeidian
Committee on Foreign Investment
The US government has asked New Mexico-based Emcore to call off its planned joint venture with China’s Tangshan Caofeidian Investment. The government believes the partnership could threaten national security.
The US fibre optics maker has withdrawn a voluntary filing with the Committee on Foreign Investment after the executive branch panel said it had “regulatory concerns” over the venture.
Under the terms of the planned deal, Emcore was set to sell 60% of its fibre optics business to the Chinese company for $27.8 million in cash. The two companies are willing to explore alternative means of cooperation that would address regulatory concerns and meet their objectives.
In 2009, the US had forced another Chinese company to drop a bid to buy a 51% stake in Nevada-based mining group, FirstGold. Huawei, the Chinese telecoms equipment maker, was also blocked from buying 3Com.
Emcore also works on solar photovoltaic cells, a division that is not involved in the dispute with US authorities. GTB