Sale of Philips' lighting unit hits regulatory snags

The Hague

DUTCH electronics giant Philips revealed on Monday that the US$2.8 billion sale of its lighting unit is in doubt because of US regulatory concerns, casting a cloud over news of better-than-expected profits.

Philips had announced seven months ago that it was selling a majority stake in its LED and car lighting arm, Lumileds, to a consortium led by China-based GO Scale Capital Investment. The deal had been expected to bring in US$2.8 billion in cash for Philips, which last year announced it would focus on healthcare-lifestyle and split off its historic lighting section. But US regulatory concerns have put the plan in doubt.