A Chinese-controlled team has quiet its scheme to buyout a share in HERE, the German carmaker-supported mapping firm, after it was unsuccessful to win authorization from the panel a U.S. national security oversight.
Navinfo, the Chinese mapping company, claimed this week that the firm and partners Tencent, the Chinese Internet major, and GIC, the sovereign wealth fund from Singapore, had plunged plans to take 10% of HERE, which is designing high-resolution maps to allow self-directed driving and a series of various Internet services.
Navinfo claimed to the media in a statement that it invested months after the contract was declared in January looking for sanction from the CFIUS (U.S. Committee on Foreign Investment). But after meeting CFIUS opposition, the group had agreed to pull its offer of investment. It did not give data of why CFIUS countered the spending.
HERE, the biggest provider of digital maps in the world for the automobile industry, carries out business in the U.S. and is 15% controlled by Intel Corp, the U.S. chipmaker.
Chinese spending in firms that the U.S. government believes to be important to national safety have come under rising inspection from CFIUS, a guarded interagency board headed by the department of Treasury.
In 2016 CFIUS jammed plans by a Chinese firm to obtain the possessions of Aixtron, the German electronic chipmaker, and a 2nd deal in which Philips aimed to trade Lumileds, its lighting commerce, to a Chinese company.
Amsterdam-based HERE and Navinfo claimed in individual statements that they both still aimed to work together to make high resolution maps for upcoming self-directed driving services in China, without partners or Navinfo taking a monetary share in HERE.
Tencent, Navinfo, and GIC aimed to take a 10% share in HERE by purchasing shares from luxury automakers of Germany such as Daimler AG, BMW, and VW’s Audi business, which are three managing shareholders of HERE.
“The move follows a regulatory assessment procedure during which the companies decided that there was no feasible path to getting the essential sanction for the transaction to advance,” HERE claimed to the media in a statement at an event.