Philips sale of lighting unit cancelled because of US concerns

Dutch electronics giant Philips said on Friday the planned $2.8-billion sale of its Lumileds lighting unit to GO Scale Capital has been cancelled because of US regulatory concerns.

Both companies failed to convince the Committee on Foreign Investment in the United States (CFIUS) to clear the deal, Philips said, adding that it is seeking another buyer for the unit.

"We will now engage with other parties that have expressed an interest in exploring strategic options for Lumileds," Philips chief executive Frans van Houten said in a statement.

Philips and GO Scale have now withdrawn their CFIUS filing, the Dutch company said, calling the US regulatory concerns "unforeseen".