Chinese Firm Cancels Purchase of Toshiba's U.S. LNG Unit

Economy

Tokyo, April 11 (Jiji Press)--Toshiba Corp. <6502> said Thursday that China's ENN Ecological Holdings Co. has informed the Japanese firm of its board's decision to cancel its planned purchase of a Toshiba subsidiary for the U.S. liquefied natural gas business.

The decision followed delays in the screenings by Chinese and U.S. authorities of the ENN group's acquisition of the Toshiba unit.

As the reason for the decision, the major Chinese gas firm cited "considerable uncertainty" following the failure to complete the deal by the end of March, as agreed between both sides, according to Toshiba.

In the United States, a sense of wariness is growing about Chinese firms' involvement in the energy or other national security-linked sectors.

Aiming to withdraw from the U.S. LNG business at an early date, Toshiba signed a contract with the ENN group in November last year on the sale of the U.S. subsidiary.

[Copyright The Jiji Press, Ltd.]

Jiji Press