GERMAN semiconductor equipment maker Aixtron will explore with its Chinese suitor what can be salvaged of the planned takeover after a U.S. presidential order ruled the deal posed a national security risk, the company said Saturday.

    U.S. President Barack Obama blocked China’s Fujian Grand Chip Investment Fund (FGC) from acquiring Aixtron’s U.S. business, the U.S. Treasury Department said Friday.

    “The bidder and Aixtron are evaluating the impact of the Order on the conditions to be fulfilled under the takeover offer and will coordinate with the German Federal Financial Supervisory Authority (BaFin) to examine the consequences of the Order on the takeover process,” Aixtron said in a statement.

    It added the presidential order was limited to Aixtron’s U.S. business and did not per se prohibit the acquisition of Aixtron shares and American depositary shares FGC.

    Aixtron has previously said that scrapping the proposed deal would mean it would have to cut costs and jobs would be at risk.

    Obama’s executive order barring FGC from completing the acquisition of the German company with American assets was one of few such instances in which a U.S. president has blocked a transaction due to national security concerns.

    His action appeared to be based on concerns about China gaining access to the secrets of producing a material called gallium nitride used in military equipment.

    In 2012, Obama ordered Ralls Corp., owned by China’s Sany Group, to sell its interest in wind farms near sensitive U.S. naval installations in Oregon.

    Chinese Foreign Ministry spokesman Geng Shuang told reporters at a regular briefing Friday that the deal was “normal commercial activity” and that China hoped the world would not interfere politically.(SD-Agencies)