A $390 million takeover proposal for advanced manufacturer Rakon failed because of concerns Nasdaq-listed semiconductor manufacturer Skyworks held about the New Zealand firm’s compliance with US technology export controls.
On Monday, Rakon divulged it had dropped an unnamed Chinese customer it said was responsible for about 5% of its revenue in the 2025 financial year after a review.
A years-long BusinessDesk investigation found that at the centre of the revelations, Rakon had also been engaging with regulatory authorities to ensure it was compliant with international trade requirements, which was the failed takeover bid.
Rumours have been circulating for months about what really happened when the $390m proposal, widely reported to be from US firm Skyworks, failed.
The US semiconductor manufacturer was uneasy with Rakon’s compliance, including its Chinese exports, and these apprehensions ultimately led to Skyworks pulling out of the proposed deal, multiple sources with knowledge of the situation told BusinessDesk.
