NKT A/S's Sale of NKT Photonics to Hamamatsu Photonics Faces Regulatory Hurdle in Denmark

Posted  by GoPhotonics

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NKT A/S, an industrial holding company with interests in power cables and wires as well as optical components, lasers and crystal fibres, announced that they have entered into an agreement to divest NKT Photonics to Photonics Management Europe S.R.L, a 100% owned subsidiary of Hamamatsu Photonics, Japan (the Purchaser). Closing of the transaction was subject to regulatory approvals being obtained.

In the past few months, the necessary regulatory approvals have been obtained from the authorities in Germany, the United Kingdom, and the United States. However, on 2 May 2023, NKT received notification that the Purchaser has been denied the authorisation under the Danish Investment Screening Act needed for the Purchaser to proceed to complete the transaction and acquire NKT Photonics. According to the Danish Investment Screening Act, the Danish Minister for Industry, Business, and Financial Affairs can refuse to authorise a foreign company's investment in Denmark, such as the Purchaser's acquisition of NKT Photonics, if it poses a threat to national security or public order in Denmark.

NKT awaits the Purchaser's further actions in response to the decision and, separately, NKT evaluates its options considering the decision. NKT deems to be contractually well protected against the situation.

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