Taiwan rejects China's Luxshare investment in Merry Electronics

Merry Electronics Co

30/06/2016 12:32

TAIPEI, June 30 (Reuters) - Taiwan said it had rejected a 
plan by China's Luxshare Precision Industry Co  002475.SZ  to 
invest in Merry Electronics Co  2439.TW  on Thursday, the first 
rejection of Chinese capital in a technology firm under the new 
Democratic Progressive Party government. 
    Scrutiny of Chinese investment has intensified since Taiwan 
President Tsai Ing-wen of the DPP took office in May, with $1 
billion in investment in Taiwan's chip sector planned by 
Beijing-backed Tsinghua Unigroup still awaiting approval. 
    Merry Electronics, which makes headsets, speakers, 
amplifiers and other small acoustical devices, is considered a 
market leader in its field and in Taiwan and Thursday's decision 
was issued by the Investment Commission, which reviews inbound 
and outbound investment. 
    "Considering that Merry Electronics is the domestic leader 
in the micro-electronic acoustics industry, (such an investment) 
could affect the future of Taiwan's overall development in this 
industry," the commission said in its statement.  
    Taiwan heavily regulates investments related to China and 
the island's technology industry, which is a mainstay for the 
economy and one of the world's largest.  
    Luxshare Precision via its unit in Hong Kong planned to 
invest T$3.78 billion ($117 million) to take a 25.4 percent 
stake in Merry Electronics, making it the largest shareholder, 
and control three board seats, a move the commission said would 
give it effective management control.  urn:newsml:reuters.com:*:nL3N13W346 
($1 = 32.1810 Taiwan dollars) 
 
 (Reporting by J.R. Wu; Editing by Alexander Smith) 
 ((jr.wu@thomsonreuters.com; +886 2 2500 4881; Reuters 
Messaging: jr.wu.thomsonreuters.com@reuters.net)) 
 
Keywords: MERRY LUXSHARE ICT/