Security Worries Led Germany to Question Chinese Takeover of Aixtron

FRANKFURT—The German government reopened its review of a €670 million ($728.89 million) Chinese takeover of chip equipment maker Aixtron SE because of security concerns, the buyer said on Tuesday.

"Information…indicates the know-how of Aixtron also comprises security-related technologies, in particular in the defense sector, which could be revealed through the contemplated acquisition of Aixtron," said Grand Chip Investment GmbH, the German unit of China's Fujian Grand Chip Investment Fund LP.

Grand Chip said the withdrawal didn't mean its offer would be terminated. Grand Chip bid €6 per share for Aixtron in May, and the German government issued a clearance in early September. On Monday, Germany's economics ministry confirmed that it withdrew the clearance but declined to elaborate on the reason.

The proposed acquisition of Aixtron is part of a wave of Chinese offers for German technology firms that has raised concern in the government. Some of the targeted companies specialize in innovative technologies important to industry, including the auto sector.

The offer period ended Friday, and final results will be announced Oct., Grand Chip said. On Monday, it said it had secured roughly 65% of Aixtron, well above the 50.1% threshold it set for the deal to go forward.

Write to Sarah Sloat at sarah.sloat@wsj.com

(END) Dow Jones Newswires

October 25, 2016 04:25 ET (08:25 GMT)

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