Foxconn is attempting to acquire the consumer electronics and networking manufacturer Belkin International, which owns the Linksys and Wemo brands. However, the deal could be rejected by the U.S. Committee on Foreign Investment:
The Taiwanese company known best for manufacturing iPhones, Foxconn, will soon be the company behind some of the best known routers and other computer accessories. A subsidiary of Foxconn, Foxconn Interconnect Technology, announced today that it would acquire Belkin, which also owns the brands Linksys and Wemo.
[...] Foxconn will pay $866 million in cash to acquire Belkin. The Financial Times notes that the purchase should be subject to approval from the US Committee on Foreign Investment, meaning it isn't a done deal just yet. Given that there have been other high profile foreign acquisitions shut down under the Trump administration, one shouldn't consider this purchase safe — especially since it involves networking equipment. That said, Foxconn has pledged to build a $10 billion factory in Wisconsin, which could help it stay on the administration's good side.
Also at Bloomberg and 9to5Mac.
(Score: 5, Interesting) by Virindi on Tuesday March 27 2018, @05:19PM (1 child)
Everyone is always buying everyone else these days. Having trouble competing? Buy the competition! Buying another company seems to be the answer to everything.
Despite promises to the contrary, huge companies buying other huge companies is pretty much always negative for the market and the consumer in the long run (unless the new combined company still fails). And when you get big enough, mysteriously, the rules don't seem to apply to you anymore unless your violation is extreme. Bonus!
I do admit to, despite piecemeal application being contrary to the rule of law, enjoying when Trump blocks huge mergers. Big companies should not be buying big companies anyway. If you suck, you should fail. And forbidding mergers and buyouts would help reduce the average market share of any given player, which would increase competition and decrease the "too big to fail" effect. It's just too bad it is a selective power used when politically expedient. That sucks.
(Score: 0) by Anonymous Coward on Tuesday March 27 2018, @11:40PM