Sanan Optoelectronics’ acquisition of Lumileds has been terminated

On April 17, Sanan Optoelectronics announced that the company originally planned to join forces with foreign investors to acquire 100% equity of Lumileds Holding B.V. for US$239 million. Because the Committee on Foreign Investment in the United States determined that the transaction caused irresolvable U.S. national security risks, it requested to withdraw the declaration and abandon the transaction. In view of the failure to meet the prerequisites for delivery, the parties to the transaction have voluntarily abandoned the transaction.

The announcement stated that after Sanan Optoelectronics and related parties signed the "Share Purchase Agreement" and related documents, they submitted approval applications to the Committee on Foreign Investment in the United States and other relevant national government departments for this transaction. Although the parties to the transaction have had multiple rounds of communication with CFIUS, CFIUS still determined that this transaction would cause irresolvable U.S. national security risks and required all parties to withdraw the CFIUS declaration and abandon the transaction.

According to the prerequisites for delivery in the "Share Purchase Agreement", passing the review by relevant domestic and overseas competent authorities is a prerequisite for the implementation of this transaction. According to the aforementioned regulatory review results, the prerequisites for delivery specified in the agreement can no longer be met. In view of this, the parties to the transaction submitted a letter of withdrawal of the CFIUS declaration to CFIUS on April 17, 2026, China time, and voluntarily gave up the transaction.

Sanan Optoelectronics and overseas investors will jointly complete the application withdrawal procedures with approval agencies in other countries in the near future, and will immediately promote the termination of the acquisition of 100% equity transaction of Lumileds Holding B.V.

Sanan Optoelectronics has not yet paid the equity transfer price, and the underlying equity has not been delivered. The termination of this transaction does not constitute a breach of contract, will not have a substantial adverse impact on the company's financial status and ability to continue operating, and will not affect normal production and operations. And Sanan Optoelectronics will continue to firmly promote its internationalization strategy and continue to enhance the company's competitiveness in the mid-to-high-end LED field and the global market.

In recent years, Sanan Optoelectronics has continued to invest in the high-end LED field, and its 2025 performance forecast shows that its proportion of high-end LED products continues to increase. Lumileds' core competitiveness is concentrated in mid-to-high-end LED applications.

It is understood that Lumileds is headquartered in Eindhoven, the Netherlands. It was formerly the lighting business segment of Royal Philips. It completed the equity sale in 2017 and was indirectly controlled by STAK, a foundation established by financial institutions after bankruptcy and reorganization in 2022. It currently focuses on mid-to-high-end LED products such as automotive lights, camera flashes and special lighting. It has mature production bases in Singapore and Malaysia, and its customers cover global automotive lighting manufacturers and high-end lighting scenarios.