Cree agrees that Wolfspeed will be sold to Infineon, and the US foreign investment committee may not approve it!
February 9, Cree, Inc.
It is the market leader of LED lighting, and has just announced today that it has finally agreed to sell its Wolfspeed Power and RF departments (Wolfspeed)
Information, including silicon carbide substrate services for power supply, RF and gem applications, to Infineon Technologies AG (
FSE: IFX/OTCQX: IFNNY). According to the US Foreign Investment Committee (CFIUS)
The two sides believe that the current form of the transaction is unlikely to be approved by CFIUS.
The parties are exploring whether there are alternatives to modify the transaction to mitigate or resolve regulatory issues, and if both parties agree, it involves supplementing CFIUS.
There is no guarantee that both parties can reach a trading structure that can be approved by CFIUS.
Therefore, the possibility or timing of closing the transaction is uncertain until the results of these efforts.
Previously, German chip manufacturer Infineon Technologies (
Infineon Technologies AG)Also announced that the company has agreed to 8.
The total cash price of 0. 5 billion US dollars was to acquire wolfspeed assets of Cree company, headquartered in North Carolina, USA. Infineon CEO Rehad Pross (Reinhard Ploss)
It has also been said that the silicon carbide chips produced by Wolfspeed will gradually replace traditional chips in the next few years, especially in the electric and hybrid vehicle markets.
Currently, about 50 of Infineon's sales come from the corporate industry.
The acquisition of Wolfspeed will increase the company's amortized earnings per share and profit margin in the short term.
At present, Infineon's gross profit margin is about 55, and it is expected to maintain an average annual growth rate of 20 in the next four years. As for 8.
Infineon said it bought Wolfspeed for US $0. 5 billion.
$0. 2 billion will be funded through bank loans, and another 1. $0. 3 billion was paid in cash.