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U.S. Clears SoftBank's $2.25 Billion Investment in GM-Backed Cruise
US National Security Panel has approved an investment with US$2.25 billion worth over a US self-driving Vehicle Company majority-owned by General Motors Co, Cruise. This investment is approved in the firm by Japan’s SoftBank Corp, under the increasing US trade and technology war with Chinese firms.Its second $100 billion investment vehicle, dubbed Vision Fund, is undergoing after deploying its first one of equal size.
This deal will allow $900 million of the investment to be disbursed initially with the remainder provided once Cruise AVs are ready for commercial deployment and contingent on regulatory approval, which would give SoftBank a nearly 20 percent stake in Cruise if both things were combined.
The Committee on Foreign Investment in the United States (CFIUS) has approved the investment based on fresh assurances that Cruise’s technology would be completely off limits to SoftBank, a source familiar with the matter said. A SoftBank spokesman declined to comment that led to The Treasury Department, CFIUS leader, to not respond to a request for comment immediately.
The investment raised red flags with CFIUS as SoftBank also invests in numerous China-based mobility units and encourages companies it invests in to share information. The fact that SoftBank’s co-investments with a Chinese social media and gaming giant Tencent Holdings Ltd concerned CFIUS. SoftBank also plant some investments in China ride-hailing firm Didi, which create a possibility that it could take technology from Cruise, as sources said.
Source: https://www.reuters.com/article/us-cfius-softbank-gm-exclusive/exclusive-u-s-panel-clears-softbanks-2-25-billion-investment-in-gms-cruise-idUSKCN1U100J
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