The Danish government has blocked Hamamatsu Photonics’ €205m acquisition of NKT Photonics.
The acquisition was announced in June last year, when Danish firm NKT A/S entered into an agreement to divest NKT Photonics to Photonics Management Europe S.R.L, a 100% owned subsidiary of Hamamatsu Photonics K.K, Japan.
Set to be completed in March, the deal would have expanded Hamamatsu’s solution portfolio for the industrial, scientific, and health care sectors.
However, despite having obtained the required regulatory approvals from authorities in Germany, United Kingdom, and the United States, NKT recently received notification that Hamamatsu Photonics has been denied the required authorisation to complete the transaction by the Danish Minister for Industry, Business, and Financial Affairs.
The notification cites the Danish Investment Screening Act, which gives the Minister the power to refuse authorisation of a foreign company's investment in Denmark if it poses a threat to national security or public order in Denmark.
While no additional information is yet available, NKT has stated that it currently awaits Hamamatsu’s further actions in response to the decision, while simultaneously evaluating its own options.
