Infineon Gets China Antitrust Clearance For Proposed Cypress Merger; Stock Up

(RTTNews) - Shares of Infineon Technologies AG (IFNNY) were gaining around 7 percent in the morning trading in Germany after the semiconductor maker obtained antitrust clearance from China's State Administration for Market Regulation for its merger transaction with US-based Cypress Semiconductor Corp. (CY).

In a statement, Cypress said it expects the merger to close on or about April 16, 2020, pursuant to the terms of the merger agreement.

Last June, Infineon Technologies had agreed to buy Cypress Semiconductors for $23.85 per share in cash or $8.7 billion.

According to Bloomberg, the acquisition is facing concerns from the Committee on Foreign Investment in the United States or CFIUS, who fear that Infineon's takeover of the chipmaker poses a risk to national security.

San Jose, California-based Cypress designs and manufactures semiconductor products for the defense industry. Infineon, based in Neubiberg, Germany, generates a major part of its sales from China.

In Germany, Infineon shares were trading at 15.16 euros, up 7.21 percent.