Grand Chip says bid for Aixtron is off

The takeover offer lapses after US order rejects inclusion of Aixtron's local arm as part of deal

China has become hostage to growing protectionism in overseas mergers and acquisitions, observers said, after the implosion of yet another Chinese bid due to political obstruction.

China's Fujian Grand Chip Investment Fund LP has confirmed its withdrawal from its planned deal to take over German chip equipment maker Aixtron SE, after the United States prohibited the acquisition, citing "security concerns".