NEW YORK (TheStreet) -- China's Huawei Technologies has withdrawn its attempt to win U.S. government approval for its acquisition of assets and technology from 3Leaf Systems, according to published media reports.
The Chinese telecom equipment shop completed the transaction last May, but was waiting for approval from the Committee on Foreign Investment in the United States.
Although the committee had already recommended against the deal, Huawei had said as late as Monday it would push to receive a final decision from President Obama,
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In a short statement, the company said it reversed course because of the controversy surrounding the deal, the
"This was a difficult decision, however we have decided to accept the recommendation of CFIUS to withdraw our application to acquire specific assets of 3Leaf," the statement said, according to the
. "The significant impact and attention that this transaction has caused were not what we intended."
CFIUS reviews acquisitions by foreign companies that could affect U.S. national security. Typically, foreign companies file applications with CFIUS before completing acquisitions, but Huawei didn't originally submit one, saying it didn't think it was needed because it wasn't acquiring all of 3Leaf, the
But Defense Department officials later asked the company to file retroactively for a CFIUS review, the
This article was written by a staff member of TheStreet.