KUALA LUMPUR (April 17): Inari Amertron Bhd (KL:INARI), along with China’s Sanan Optoelectronics Co Ltd, have called off their proposed joint acquisition of Lumileds Holding BV after US authorities raised national security concerns.
In a filing on Friday, the semiconductor firm said the decision follows a review by the Committee on Foreign Investment in the United States (CFIUS), which requested that the parties withdraw their filing and abandon the deal, citing unresolved national security concerns.
Inari said regulatory approvals were a key condition under the share purchase agreement, and the inability to secure clearance from the CFIUS meant the transaction could no longer proceed.
“Despite the parties’ efforts, CFIUS has determined that the proposed joint acquisition presents unresolved national security concerns and has requested the parties to withdraw their CFIUS filing and abandon the proposed joint acquisition,” Inari said in the filing.
Both Inari and Sanan jointly agreed to submit their withdrawal to the US regulator on Friday (April 17) and will take steps to withdraw relevant filings with other regulators.
In August 2025, Inari and Sanan announced plans to jointly acquire 100% of Lumileds for an enterprise value of US$239 million (RM1.03 billion at the time), as part of a push into the global light-emitting diode (LED) market.
The deal was to be carried out via a Hong Kong-incorporated vehicle co-owned by Sanan (74.5%) and Inari (25.5%), with both parties also committing additional US$41 million for working capital needs.
Inari’s share of the total investment was estimated at US$71.4 million.
Lumileds, headquartered in Amsterdam, produces LED components for applications such as automotive lighting and camera flash, while Inari had expected the acquisition to complement its existing semiconductor operations, particularly its back-end assembly activities in Malaysia.
The group said the termination does not constitute a breach of the agreement and does not expose any party to claims for wrongful termination. No payment was made for the acquisition, says Inari, and no shares had been transferred out of Lumileds.
Inari added that the cancellation will not affect its operations or have a material impact on its earnings, net assets, gearing or share capital for the financial year ending June 30, 2026.
“The company remains committed to pursuing other mergers and acquisitions opportunities to advance its competitiveness in the industry and global markets,” said Inari.
On Friday’s closing, Inari’s shares were unchanged at RM1.65, valuing the group at RM6.28 billion. Over the past year, the group’s counter has been up by 2.5%.