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infineon, cree warn u.s. might block wolfspeed deal

by:Dolight LED Panel     2019-08-28
(Reuters)-
German chip manufacturer Infineon Technology Co. , Ltd. IFXGn. DE)and U. S.
Corey, LED lighting manufacturer (CREE. O)
Kerry agreed to $0. 85 billion, warned Wednesday (678.
26 million)
Take the US as an example, selling its Wolfspeed Power unit to Infineon may not continueS.
Government security issues
The plight of the deal underlines a drive by the United States to stop the transfer of what it considers sensitive technology, even if the acquirer comes from traditional allies such as Germany, by contrast, china and others are more likely to cause national security doubts.
Infineon and Corey do not specify the nature of the United States. S.
Security issues.
However, Wolfspeed uses a sensitive powder compound, gan, which has been responsible for the production of the United States, capable of military use. S.
Buying was blocked in the past.
\"It clearly shows that the United StatesS.
The government will protect what the defense industry considers important.
\"The US doesn\'t want to lose its edge, and in this regard it doesn\'t matter if the acquirer is from Germany or China,\" said Brian Chilton, a regulatory lawyer at DLA Piper LLP who was not involved in the deal.
Committee on Foreign Investment (CFIUS)
The government team responsible for reviewing transactions that may involve security issues notified the two companies that the transaction poses a risk to the US economyS.
Infineon said on Wednesday that it is national security.
It added that to date, the Foreign Investment Commission has not identified any mitigation measures that would allow the transaction to pass.
Infineon said: \"In this context, Infineon believes that according to the agreement, the risk of the transaction not ending is very high . \" It will work closely with CFIUS and Cree to find solutions, added.
Kerry said in another statement that the two sides were exploring alternatives to changing the deal.
The company said there was no guarantee that the new transaction structure would remove the concerns of the Foreign Investment Board.
Infineon agreed to buy Wolfspeed-
Sic substrate business including power, RF and gemstone applications-
Gambling on new energy in last JulyEfficient chip.
CFIUS froze $2 last year.
Flight 8 billion (PHG. AS)
Component lighting department of investor consortium led by GO Scale Capital. The U. S.
The division of the Dutch company also uses gallium nitrogen compounds to manufacture components.
In December, Philips reached another deal with the United States to sell Lumileds to the United States. S.
Apollo Global Management LimitedAPO. N)for $1. 5 billion.
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