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Trade war

US blocks Japan's Lixil from selling building unit to China

Italian subsidiary supplied glass panels to One World Trade Center

Permasteelisa, the Italian construction materials unit whose sale to a Chinese company has been blocked, supplied materials for New York's One World Trade Center, pictured here rising above Manhattan.   © Reuters

TOKYO -- A U.S. government panel has blocked top Japanese building supplies maker Lixil Group from selling off a money-losing Italian subsidiary to a Chinese company, demonstrating how trade tensions pose a growing risk to cross-border corporate deals.

Lixil said on Monday that the Committee on Foreign Investment in the United States, an interagency body led by the Treasury Department, did not approve the 467 million euro ($535 million) sale of Italian architectural unit Permasteelisa to Chinese construction group Grandland Holdings. Lixil said it was "considering future options" and has not given up on the sale.

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