Chinese firm abandons acquisition over US scrutiny

A variety of SanDisk memory cards are seen with a Western Digital hard drive box in Golden, Colorado in this photo illustration October 21, 2015 file photo. A spate of proposed Chinese takeovers of U.S. companies, from the Chicago Stock Exchange to makers of high-end technology chips, has created a vibrant business for a small circuit of Washington insiders whose job is to help get crossborder deals approved by the U.S. government. Western Digital said China's Unisplendour Corp Ltd backed out of buying a stake in the US company because CFIUS planned to probe it. REUTERS/Rick Wilking/Files

BEIJING: A Chinese tech firm has abandoned a multi-billion dollar investment in an American hard-disk manufacturer, state media reported, after the plan came under scrutiny from US lawmakers. 

Unisplendour Corp (UNIS) will rescind its US$3.8bil (RM16bil) offer for approximately 15% of California-based Western Digital, the Global Times reported.