Philips suffered a major setback in plans to dispose of its big lighting division as a $3.3 billion deal to sell its components business to a consortium of Asian buyers broke down over US national security objections.
The agreement to sell an 80% stake in Lumileds ran into opposition from the Committee on Foreign Investment in the US (CFIUS), Philips said.
Philips, the world's biggest lighting maker, did not disclose the nature of the concerns raised by the committee, which vets deals for US national security issues.
Lumileds makes lighting components used mostly in cars but also in consumer electronics such as smartphones and televisions.
The frustrated buyer, Go Scale Capital, comprises GSR Ventures, Oak Investment Partners, Asia Pacific Resource Development and Nanchang Industrial Group.
The Dutch company said in a statement that it had tried and failed to address US concerns over the deal.
"I am very disappointed about this outcome as this was a very good deal for both Lumileds and the GO Scale Capital-led consortium," Philips CEO Frans van Houten said.
Spokesman Steve Klink said the company will now seek a different buyer for Lumileds, which had $2 billion in sales last year, andis opening discussions with other parties that have expressed interest.
