Jiujiang Defu Luxembourg acquisition 2026 collapses under EU regulatory pressure
Chinese EV battery supplier Jiujiang Defu Technology scraps its $200m Luxembourg acquisition due to local restrictions. Learn why the deal failed on Jan 12, 2026.
A $200 million gateway to Europe just closed for one of China's key players in the EV battery supply chain. On January 12, 2026, Jiujiang Defu Technology, a prominent supplier of EV battery parts, announced it's abandoning its bid to acquire a peer in Luxembourg.
The $200m Jiujiang Defu Luxembourg Acquisition 2026 Failure
According to reports from Nikkei Asia, the deal collapsed after the Luxembourg government imposed "extra local restrictions" that made the transaction non-viable. Jiujiang Defu stated that these additional requirements, likely tied to national security and supply chain integrity, led to the decision to scrap the $200 million acquisition plan.
Strategic Decoupling and Global Supply Chain Shifts
This setback isn't an isolated incident. It highlights the growing challenges Europe faces as it tries to shift away from Chinese dependency. The ongoing dispute over Nexperia and warnings from CEOs like Ford's regarding Chinese overcapacity underscore the friction. As the EU ramps up its scrutiny, the path for Chinese firms to acquire strategic European assets is becoming increasingly narrow.
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