German chipmaker Aixtron's pending acquisition by China's Fujian Grand Chip Investment Fund (FGC) seems to have hit a minor roadblock. The German chipmaker said that it had received a recommendation from the Committee on Foreign Investment in the United States (CFIUS) to block the proposed takeover deal.

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Aixtron stated that the CFIUS, which scrutinizes deals that are potentially national security risks, has said that it plans to forward the recommendation to the U.S. President.

However, the Herzogenrath-based company reportedly said in a statement that it has decided not to follow the recommendation.

Analysts claim that the recommendation by the CFIUS, which is headed by the U.S. Treasury Department, is not binding.

The negative recommendation comes after a recent report in German newspaper Handelsblatt stated that the U.S. intelligence agency had warned German Prime Minister Angela Merkel's government against the Aixtron-FGC deal. There are fears that the deal could give the Chinese firm access to critical technology that could be potentially used for military activities.

It must be noted that German robotic company Kuka AG's takeover by Chinese firm Midea Group had faced similar problems, with German politicians raising concern on security grounds. However, Merkel's government gave a go-ahead to the deal and the takeover was officially completed in August.  

Over the past year, Chinese firms have been on an acquisition spree to expand their footprint in the international market. However, their acquisition drive has often hit a roadblock due to opposition by Western governments on security grounds.    

TagsAixtron, Fujian Grand Chip Investment Fund, Aixtron Acquisition, Aixtron Takeover Deal, china