Corning Agrees to Sell Laser Business to Chinese Company
(Bloomberg) -- Corning Inc., the American manufacturer that supplies glass for Apple iPhones, has agreed to sell its German laser-technology business to China’s Suzhou Delphi Laser for as much as €15 million ($16 million).
Most Read from Bloomberg
S&P 500 Up 2% as Bets ‘Fed Is Done’ Sink US Yields: Markets Wrap
Apple Gets 36% of Google Revenue in Search Deal, Expert Says
Suzhou Delphi Laser signed a pact with Corning International on Wednesday to buy the entire stake of the division, Corning Laser Technologies, according to an exchange filing. Corning, based in the New York town of the same name, confirmed the transaction on Thursday.
Though the transaction is small in size, it faces an increasingly fraught regulatory climate. The Biden administration is more closely examining US business dealings with China, seeking to crack down on the sale of advanced technology to the country — fearing it may wind up in the hands of the military.
The Corning deal doesn’t involve cutting-edge semiconductors or chipmaking equipment, but the buyer has identified Huawei Technologies Co. as a customer. Huawei has come under increasing scrutiny over its security practices and recently began selling a smartphone in China that rivals Apple’s iPhone. The US banned business with Huawei during the Trump administration over national security concerns.
In a statement, Corning said the deal was meant to “better align the company’s business portfolio.”
“As this transaction is pending necessary approval, we’re unable to share additional details at this time,” Corning said.
The transaction will need approval from China, Germany and the US, as well as the company’s board and shareholders.
A representative for the Treasury Department said that the Committee on Foreign Investment in the United States, or Cfius, is “committed to taking all necessary actions within its authority to safeguard US national security.”
“Consistent with law and practice, Cfius does not publicly comment on transactions that it may or may not be reviewing,” the spokesperson said.
The German Ministry for Economy and Climate Protection said it couldn’t provide any information on its screening process because it involves “sensitive business secrets that only the companies concerned can disclose.”
--With assistance from Agatha Cantrill and Mackenzie Hawkins.
(Updates with comments from US and German officials starting in eighth paragraph.)
Most Read from Bloomberg Businessweek
Everything Biden and Xi Need From Their Summit—Starting With Each Other
US Veterans Got a Mortgage Break. Now They’re Losing Their Homes
A German Startup Races Google to Develop a Universal Translator
©2023 Bloomberg L.P.
