(Reuters) – Shares in Cypress Semiconductor Corp jumped in after-hours trade on Monday after the company said U.S. officials found no national security concerns with its proposed $10 billion takeover by German chipmaker Infineon Technologies.
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, Infineon said in a statement https://www.infineon.com/cms/en/about-infineon/press/press-releases/2020/INFXX202003-037.html.
(Reporting by Ismail Shakil in Bengaluru; Editing by Subhranshu Sahu)
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