Tsinghua Unigroup’s expected bid for US memory chip maker Micron Technology is likely to face a tough review by US authorities, Bloomberg News reported.
The Committee on Foreign Investment in the United States, a panel led by the Treasury Department, will subject the deal to tight scrutiny due to concerns over Chinese control of US technology firms, the report said.
State-backed Tsinghua Unigroup is believed to be lining up a US$23 billion offer for Micron in what could be the largest takeover of a foreign company by a Chinese firm.
An announcement could come as early as Wednesday, Bloomberg cited a source as saying.
The deal would give China the world’s fifth-largest chipmaker by revenue, one able to compete with the likes of Samsung Electronics and SK Hynix, the report noted.
US lawmakers and regulators will examine the proposal carefully, given the national security concerns.
“Whether it has a chance requires very detailed analysis of information — much of which is confidential,” Stewart Baker, a former National Security Agency general counsel and now a partner at a Washington law firm, told Bloomberg.
Nova Daly, a senior public policy adviser at another law firm, said he believes the Micron deal would be approved but with some conditions.
– Contact us at [email protected]