China’s bid to purchase Toshiba’s U.S. liquefied natural gas (LNG) business was blocked by CIFIUS. Analysts have warned, failure to find a buyer will significantly dent the chances of its recovery from bankruptcy.
On Friday, Toshiba Corp’s shares fell by as much as 5.4% following the collapse of an agreement to offload its U.S. liquefied natural gas (LNG) business.
The development marks a new blow for the Japanese conglomerate which has undertaken a strategy of divesting its assets to turn around its business.
Late on Thursday, Toshiba stated, China’s ENN Ecological Holdings Co had scrapped an agreement to take over its LNG business after it failed to get an approval from CIFIUS, a U.S. panel that monitors foreign investments.
Toshiba will now have to look for a new buyer for the business.
Significantly, analysts have warned, failure to find a buyer could derail its recovery from the fallout of the bankruptcy of its U.S. nuclear power unit – Westinghouse.