A planned acquisition of mobile hotspot player Novatel Wireless by TCL Communications hit another hurdle, as the smartphone maker’s chairman warned of “protectionism” in the US.

TCL, through subsidiary Jade Ocean Global, is looking to acquire Novatel from current owner Inseego. This week, the companies withdrew and refiled a notice submitted to the Committee on Foreign Investment in the US (CFIUS).

In a statement, the pair explained the move will “provide additional time for the parties and CFIUS to seek a definitive mitigation agreement that would enable CFIUS to approve the transaction”.

It is the second time the deal was resubmitted.

Nicolas Zibell, CEO of TCL, said: “If permitted to close this acquisition by US governmental authorities, we remain committed to finalising this important and exciting transaction for TCL, and increasing our presence, business and employee base within the United States.”

Inseego said it will need to review its alternatives for the Novatel business if the deal is blocked.

Deal delays
Li Dongsheng, chairman of TCL, last week told Reuters “protectionism is the biggest roadblock to Chinese companies’ internationalisation”.

While he did not specifically reference the Novatel transaction, he did note TCL’s struggle to acquire a high-tech company with product sales in the US and manufacturing in China.

According to Reuters, Li said the deal was close to completion ahead of President Trump taking up office, at which point reviews were frozen. TCL had to resubmit documents, and was told the buy may not be approved.

The Novatel deal was announced in September 2016, with the company’s MiFi mobile broadband and USB modem business set to be sold for $50 million. It was expected to close in the first quarter of 2017.

Li also said TCL is looking at deals in Israel, and has more than ten potential targets.