Chinese electronics supplier Luxshare Precision Industry has signed a preliminary agreement with a Suzhou-based acoustics devices company owned by Taiwan-based Merry Electronics. Details of the deal include Luxshare paying up to $89.5 million for as much as 60 percent of ownership shares in the Suzhou-based company.

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Luxshare Precision Industry, which is an electronics supplier to tech giant Apple, claims that the deal will help boost the company's acoustics business. The recent move comes announced less than a month after a separate deal between the two companies was blocked.

Recently, Taiwanese regulators also rejected the plan by Luxshare Precision's Hong Kong unit to acquire 25.4 percent of Merry Electronics for $118 million. The electronics industry is one of Taiwan's biggest revenue maker, which is why the country has imposed a strict regulatory guideline on China-related investments, according to Forbes.

In a statement, Merry Electronics spokesman Allen Huang said, "We have not given up on the previous investment plan." Huang later said that the new plan which was already agreed in a letter of intent would serve as a precedent for both involved companies to have a better chance of resolving future deals.

The new investment plan will expand Merry Electronics' Suzhou plant, which is one of the company's main manufacturing facility for audio speakers. Huang is positive that the deal will not require approval from Taiwanese regulators since no capital is entering or leaving Taiwan through the investment into the Suzhou plant. Nevertheless, Huang said that the company would still communicate with regulators about the deal.

Tagschina, Luxshare, Luxshare Precision Industry, Taiwan, china news, Merry Electronics