Jan 12, 2017: Osram and MLS expect to get a green signal from the German government to their proposal for acquisition in the first half of 2017.
Germany-based Osram had announced the sale of its lamp business unit Ledvance to China-based LED packaging service provider MLS, in July 2016, at EUR400 million (US$418 million). Yiwu State-owned Assets Operation Center and MLS hold a 35.7% stake each in the consortium and IDG Capital Partners holds a 28.6% stake.
Through the acquisition of Ledvance, MLS will procure LED chips produced at Osram’s factory in Malaysia and receive supply priority. Osram will also get additional payments for licensing its trademark rights. Under the agreement, Ledvance will continue to use the Osram brand in the global market, and the Sylvania brand in North America.
It was reported that the German government was hesitant to approve the deal due to concern over outflow of Osram-developed technologies to MLS. However, since, Ledvance is engaged in the global marketing of LED lighting only, which does not involve sensitive technologies, the German government may clear the deal by the first half of 2017, according to MLS.
Although MLs’s takeover of Ledvance will end on a positive note in 2017, Aixtron and other German technology companies have not been fortunate.