US national security panel investigating Tencent’s $1.27 billion acquisition of Sumo Group

Tencent’s deal to buy Sumo Group for $1.27 billion has come under scrutiny. The acquisition is now being investigated by the US national security probe.

According to Sumo Group (via Reuters), the Chinese tech giant agreed to offer undertakings to gain approval from the Committee on Foreign Investment in the United States (CFIUS). The security task force, which is now also checking the US sale of TikTok, usually assets M&A deals to ensure they don’t hurt national security.

The Sumo Group deal is expected to be cleared before the end of the year in case the commission does not reveal any violations.

Tencent announced the acquisition of the British developer in July, saying it will also take over all of its 14 studios. Sumo Group has offices in the US and other countries and is best known for working franchises like LittleBigPlanet, Forza, and Hitman.