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China’s Tsinghua Unigroup to acquire France’s Linxens

China’s top wireless systems-on-chip maker, Tsinghua Unigroup Ltd is set to buy French smart chip component manufacturer, Linxens in a deal around 2.2 billion euros ($2.6 billion).

The details of the deal are yet to be disclosed publicly. Regulatory clearance from a private-equity group, CVC is pending to finalize the deal. Tsinghua and Linxens did not respond regarding the deal details.

Before the Linxens deal, four banks have agreed to offer Tsinghua a 1.5 billion euro ($1.75 billion) bridge loan to secure the purchase.

The Largest investor in Dialog Semiconductor Plc

Tsinghua also invested in Germany’s Dialog Semiconductor Plc., which rose to 9 percent, making it the only largest shareholder in Dialog Semiconductor Plc.

Established in 1988, Beijing-based Tsinghua Unigroup, a subsidiary of Tsinghua Holdings, is a manufacturer of wireless systems-on-chip and radio frequency semiconductors for cellular, connectivity, and broadcast applications. The company’s products are incorporated into mobile handsets, set-top boxes, MP3 players, and other wireless and consumer electronic devices.

The organization had beforehand tried to acquire Micron Technology Inc. at an unbelievable price tag of $23 billion. The company also tried to acquire Powertech Technology Inc., ChipMOS Technologies Inc., and Siliconware Precision Industries Co., but the regulators restricted the purchase on account of national security.

Paris-based Linxens is a French organization which creates smart card applications for customers. Linxens also design and manufacture microconnectors, RFID Antennas, and inlays, and produces roughly 800 million RFID transponders for every year. Linxens’ products cover telecom, financial services, access control, e-Government, healthcare, hospitality, leisure & entertainment, IoT, and transportation markets.

The firm has more than 3,000 employees worldwide with 6 billion consumers and 200 clients around the world.

According to a report, China has invested $45.5 billion in European assets which are double than last year’s investment. On the contrary, China’s investment in the United States has dropped to 75 percent.