| Schneider and Delixi 'joint venture' in spotlight |
SHANGHAI, Apr. 16 -- China's investment watchdog is investigating Schneider Electric, the world's biggest supplier of circuit breakers, over its dealings with China's second-biggest supplier of low voltage electric appliances.
The anti-monopoly office of the Ministry of Commerce held a meeting in Wenzhou City, in East China's Zhejiang Province, on Friday, attended by the ministry officials, law experts and representatives from three companies.
All the company representatives objected to any acquisition of the Delixi Group by Schneider, the Oriental Morning Post said.
France-based Schneider signed an agreement with Wenzhou-based Delixi last December to form a joint venture.
The deal increased widespread fears that Schneider was acquiring Delixi.
Nan Cunhui, president of Chint Group, the largest supplier of low voltage electric appliances in China and a forrmer partner of Delixi, has said several times that Delixi should have "realized the true nature of Schneider."
The Anti-Monopoly Office had invited about seven enterprises to the meeting. But only three attended the discussion. The meeting began at 8:30am and lasted for about four hours, the Post said.
The anti-monopoly office said contract signers should report any deal to the Ministry of Commerce and the State Administration for Industry and Commerce, according to the regulations on overseas acquisition released in September. The two authorities will approve or reject the deal after a review.
Lu Youzhong, a spokesman for Delixi, said the company had not received an invitation to the meeting and didn't know about the investigation. He added the group would stand behind the Ministry of Commerce and assist the investigation.
Chint also said it had not received an invitation to the meeting and that the matter was a typical case of overseas acquisition and worthy of attention.
Delixi, established in 1984, is one of China's largest privately-owned companies and specializes in the manufacture of electric power transmission and distribution appliances.
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