(Yicai) Nov. 28 -- Shares of Wingtech Technology, China's biggest smartphone assembler, rose after its subsidiary Nexperia said the Dutch government had approved the unit’s acquisition of local chip startup Nowi Energy after looking into the deal on national security grounds.
Wingtech [SHA: 600745] finished up 2.5 percent at CNY49.72 (USD6.99) a share in Shanghai today, after earlier gaining by as much as 3.3 percent.
The Netherland’s Ministry of Economic Affairs and Climate Policy has green-lit Nexperia’s takeover of Nowi, the unit announced yesterday. Nexperia paid CNY25.2 billion (USD3.5 billion) for Delft-based Nowi last November.
“We are pleased that, after a period of uncertainty, there is finally clarity,” said Charles Smit, head of corporate affairs at Nijmegen-based Nexperia.
The Dutch government said it may block the acquisition after the Act on Security Screening of Investments, Mergers and Acquisitions came into force on June 1, bringing in a mandatory national security regime for investments made after Sept. 8, 2020 in Dutch companies that provide vital services, are active in sensitive technology, or operate a business campus.
“It is important that there is a clear policy that strengthens the Dutch investment climate,” Smit said. “In these uncertain times, a transparent, fact-based dialogue between government and business is of paramount importance.”
Founded in 2016, Nowi makes battery-replacing chips for consumer applications. Its chips, which can be linked to a solar cell, ensure that ambient energy can be used directly in simple devices, including remote controls or price tags in supermarkets, and they can also charge a battery or replace it entirely.
After the acquisition, Nexperia can likely replace billions of batteries and contribute to a more sustainable environment, according to the company.
“Having access to the production, sales, and marketing infrastructure of a major chip manufacturer enables us to bring products to market much faster and therefore have more impact,” said Simon van der Jagt, co-founder and former chief executive of Nowi.
“Our shared Dutch background and the mission to become more sustainable makes this a perfect combination,” he said.
Earlier this month, Jiaxing-based Wingtech said it would sell a wafer plant in the United Kingdom owned by Nexperia following an order by the British government over national security concerns.
Nexperia will sell the Newport Wafer Fab to Siliconix, a unit of Vishay Intertechnology, for USD177 million, its parent company said on Nov. 8. Nexperia acquired Neptune 6, the parent of NWF which was on the verge of bankruptcy, in July 2021.
Editor: Martin Kadiev