Daily Management Review

The Chairman of Unigroup Visits Micron Representatives


08/31/2015


Unigroup is hopeful of nailing a deal with Micron, for which the chairman of the former visits the United States.



According to sources, this week the Tsinghua Unigroup’s chairman visited the United States in order to hold a meeting with Micron Technology’s board members. This was an attempt to mend ways that collapsed over a “politically fraught takeover bid”.
 
Moreover, the Unigroup had approached with an informal offer of “$23 billion” which was to be backed by the investments of the state, yet Micron dismissed the offer altogether whereby it gave the excuse that the regulatory committee of the U.S would not pass the deal as they review “foreign acquisitions of sensitive U.S. companies”. Consequently, the deal would question “national security concerns”.
 
As per the report issued by Reuters:
“In August, U.S. Senator Charles Schumer of New York called on the inter-agency Committee on Foreign Investment in the United States (CFIUS) to reject Tsinghua’s acquisition attempt, citing Micron’s role in making chips used in U.S weapons systems”.
 
In fact, John McCain, a republican senator of the United Sates, brought in the notions of national security concerns in regards to the “proposed deal” sometimes in the month of July. However, the belief of nailing the “largest foreign deal” within the camp of Tsinghua has been reinforced by the chairman, Zhao Weiguo's visit to the U.S.. in fact, is successful, this deal will mark:

“…a major step for the nation's modest but up-and-coming chip industry”.
 
Furthermore, one of the sources reveal that Zhao’s trip to the U.S will also have a stoppage in Washington, whereby the chairman intents on seeking policy expert guidance who are familiar with “the CFIUS approval process”. The trip is due to last for a week as, he is expected back to Beijing only in the following week.

Micron is based at Idaho which is the “last major U.S.-based manufacturer”, which makes “dynamic random access memory” chips or shortly called DRAM. These are utilized in “personal computers”. Interestingly, even after facing a rebuff from Micron, the company of Tsinghua has been steadily pursuing to fix its deal with the former. On a conclusive note, Reuters informs that:

“After the $23 billion offer was rejected by Micron in July, Xu Jinhong, chairman of Unigroup’s parent company Tsinghua Holdings, told Reuters that Tsinghua had not given up, saying he hoped the deal ‘could eventually come through’".
 
 
Source(s): Reuters.com







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