In recent years, Philips, a Dutch manufacturer that is actively transforming its health care business, has been discussing the purchase conditions of Lumileds, a lighting business, with several buyers. Among them, Apollo Global Management LLC is the most promising buyer.
With other investment companies halting discussions on acquisitions, Apollo Global Management may be the winner. Although Philips intends to divest Lumileds at the end of 2016, some legal persons believe that it is unlikely that they will divest at the end of the year.
Steve Klink, one of Philips' official spokespersons, also confirmed that the company is discussing details with interested buyers. After selling the lighting business in May 2016, Philips CEO Frans van Houten's next step was to marry Lumileds. The sale price of Lumileds is likely to be lower than the price that was originally sold to Jinshajiang Group in January 2016. According to ING estimates, Lumileds has a market capitalization of approximately $ 2 billion.