Currency controls stall LeEco, Vizio deal

LeEco’s effort to buy the largest television manufacturer in the US has stalled, as tighter currency controls in China put the $2 billion deal on hold. According to Caixin, the delay comes at a convenient time for LeEco, which is facing a cash crunch acknowledged by its chairman, Jia Yueting, in November. Some observers question whether the company is stretched so thin that it would be able to pay for the acquisition even if the Chinese government permits it. But LeEco could still borrow in order to make the deal. On Wednesday, a LeEco spokesman said the deal is pending regulatory approval. The high-profile acquisition attempt was meant to give LeEco a foothold in the US market. LeEco reiterated its commitment to the deal in February, stating the acquisition was still a “priority.”