The Committee on Foreign Investment in the United States (CFIUS) informed Cypress that it had determined “there are no unresolved national security concerns” with the merger, the San Jose, California-based company said in a statement.
Shares of both companies took a hit last week after a report said, citing sources, that the U.S. Treasury-led CFIUS had advised President Donald Trump to block the deal due to national security risks.
Cypress shares were up about 45% at $22.20 after market close on Monday.
Munich-based Infineon, announcing the deal last June, said it would create an automotive leader with a 13% market share by combining its prowess in managing electric drivetrains with Cypress’s edge in in-car entertainment.
Infineon, a constituent of Germany’s DAX blue-chip index, had hoped for a lift into the world’s top-10 semiconductor makers through the deal.
With footprints in the United States and China, it however finds itself in the middle of a deepening technology trade conflict between Washington and Beijing.
Its takeover of Cypress still needs approval from China’s State Administration for Market Regulation
Source: Reuters.com