(Reuters) – Lumentum Holdings Inc, seen by analysts as a parts supplier for Apple Inc’s Face ID technology, said on Thursday it received antitrust clearance from China for its $1.7 billion acquisition of Oclaro Inc.
The approval comes days after the White House said China was open to clearing chipmaker Qualcomm Inc’s previously unapproved deal for NXP Semiconductors NV “should it again be presented”. This followed a high-profile meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping last week.
After the Qualcomm/NXP deal fell through earlier this year, several proposed deals by U.S. semiconductor companies were put on ice as they had a footprint in China and required regulatory approval there.
The approval also comes against the backdrop of the arrest of a top executive of Chinese tech giant Huawei for extradition to the United States, which has sparked fears of a flare-up in Sino-U.S. tensions.
Announcing the cash-and-stock deal for Oclaro in March, U.S.-based Lumentum said the purchase was aimed at broadening its portfolio of laser offerings and getting an edge in a fast-developing market for 3D sensing technology.
Lumentum said it now expects the acquisition to close on or around Dec. 10.
Reporting by Munsif Vengattil and Sayanti Chakraborty in Bengaluru; Editing by Maju Samuel and Sriraj Kalluvila