Apple supplier Lumentum gets China approval for Oclaro deal

Lumentum Holdings Inc, seen by analysts as a parts supplier for Apple (NASDAQ:AAPL) Inc’s Face ID technology, said on Thursday it received antitrust clearance from China for its $1.7 billion acquisition of Oclaro Inc.

The approval comes days after the White House said China was open to clearing chipmaker Qualcomm (NASDAQ:QCOM) Inc’s previously unapproved deal for NXP Semiconductors NV (NASDAQ:NXPI) “should it again be presented”. This followed a high-profile meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping last week.

After the Qualcomm/NXP deal fell through earlier this year, several proposed deals by U.S. semiconductor companies were put on ice as they had a footprint in China and required regulatory approval there.

The approval also comes against the backdrop of the arrest of a top executive of Chinese tech giant Huawei for extradition to the United States, which has sparked fears of a flare-up in Sino-U.S. tensions.

Announcing the cash-and-stock deal for Oclaro in March, U.S.-based Lumentum said the purchase was aimed at broadening its portfolio of laser offerings and getting an edge in a fast-developing market for 3D sensing technology.

Lumentum said it now expects the acquisition to close on or around Dec. 10. /investing.com

 

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