The deal, which would have seen China-backed Canyon Bridge Capital Partners acquire Lattice Semiconductors, was blocked over national security concerns. Trump acted on the recommendation of a multi-agency panel, the White House and the Treasury Department said Wednesday.
"Consistent with the administration's commitment to take all actions necessary to ensure the protection of USA national security, the president issued an order prohibiting the acquisition", Treasury Secretary Steven Mnuchin said in a written statement Wednesday.
Trump ceased the pending sale of Lattice, an Oregon-based semiconductor and chip manufacturer, to a group of investors including China Venture Capital Fund Corporation, which is owned by Chinese state-owned entities.
The White House said on Wednesday that it prevented the acquisition of Lattice Semiconductor, in part because the United States government relies on the company's products. Soon after the deal was announced, several lawmakers argued the deal should be killed because the chips are key to certain USA military applications. Lattice stock fell almost 2% in after hours trading following the news.
The Committee on Foreign Investment in the US (CFIUS) had previously recommended that the deal be stopped. The committee evaluated the deal three times before concluding that it should be blocked.
The company did not have a comment on the decision at press time.
"We are obviously disappointed in today's decision by the President of the United States to forgo what we believe to be an excellent deal for Lattice's shareholders and its employees by expanding the opportunity to keep jobs in America", Canyon Bridge said in a written statement.
Lattice had procured a $1.3 billion deal in November with the private equity firm Canyon Bridge Capital Partners.
Lattice had said that Canyon Bridge now employs 300 people in OR - and Canyon Bridge has committed to adding 350 more if the takeover deal went through. The others are HNA's investment in Global Eagle Entertainment Inc., an in-flight entertainment and internet-services provider, and T.C.L. Industries Holdings' proposed purchase of Inseego Corp.'s mobile-broadband business.
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