Aluminium giant China Zhongwang frustrated by US delays calls off Aleris acquisition
Unit of Hong Kong-listed firm had extended merger deadline five times
A company owned by Liu Zhongtian, the chairman of Hong Kong-listed aluminium giant China Zhongwang Holdings, has called off a US$2.3 billion acquisition of US-based Aleris amid mounting frustration for a deal that was announced 15 months ago.
The cancellation comes after refusal by the US to approve a Chinese buyout of a technology firm.
In June, the Committee on Foreign Investment in the United States (CFIUS) recommended against the proposed US$1.3 billion takeover of Portland-based Lattice Semiconductor by Canyon Bridge Capital Partners – a private equity firm backed by China Venture Capital Fund. President Donald Trump took the advice and blocked the sale.
Zhongwang USA, owned by Chinese businessman Liu, said that it had mutually agreed with privately held Cleveland-based Aleris to not extend the merger agreement after the deadline expired on Sunday.
“The decision was driven by uncertainty related to the receipt of CFIUS approval from the United States government,” the company said.
“Although deeply disappointed by the outcome … the company and its investors will continue to pursue expansion opportunities … in the US [and elsewhere].”