The U.S. has blocked the sale of Japanese company Lixil Group Corp.’s shares of Permasteelisa to Grandland Holding Group Limited, a Chinese company. Lixil announced in August 2017 that it planned to sell 100 percent of its shares to Grandland, an architectural design and construction company, for approximately $528.5 million (EUR 467 million). The transaction was subject to customary regulatory approvals, including in China, the U.S. and Russia, according to the company.
According to a statement from Lixil posted by Global Construction Review, the company announced on October 22 that it received notice from the Committee on Foreign Investment in the United States that the sale was not approved.
“Based on receipt of the notification, [Lixil] is now considering future options,” reads the statement.
Lixil chief financial officer Sachio Matsumoto told Nikkei Asian Review that “the trade war probably had an effect” on the decision.
Lixil bought 100 percent of Permasteelisa’s shares for approximately $812.6 million* (EUR 573 million) in August 2011. North America is one of its largest markets, with an operating revenue of $473.5 million (EUR 418.6 million) in the fiscal year ending on March 31, 2018. Permasteelisa is an Italian building envelope company.
*Editor’s note: The USD amount was calculated using the exchange rate at the time of the sale, which was 1 EUR = 1.4182 USD.