Philips back-pedals and calls off LED sale

Philips is yielding to the reservations of the Committee on Foreign Investments in the US (CFIUS) and has called off the sale.............

of its LED division and auto lighting components (with the name of Lumileds) to the Chinese consortium Go Scale Capital.

Originally Go Scale was to take over 80.1% from Philips, with the rest being retained. The purchase price would have amounted to USD 3.3 bn (EUR 3.1 bn). In 2015 Lumileds generated a turn-over of approx. USD 2 bn (EUR 1.9 bn) and it employs approx 8,800 people in 30 countries.

This transaction was to begin the outsourcing of the lighting division in order to be able to focus on healthcare in future.

Philips still has the wish to sell the division, for which reason contact is now being taken up again with the firms which had been interested in taking over Lumileds, with names like Bain Capital, CVC Capital and KKR being mentioned.