Reports that the Committee on Foreign Investment in the United States (CFIUS) may yet recommend the Infineon Technologies acquisition of Cypress Semiconductor be blocked on the grounds of national security risks have triggered falls in the shares of both companies. But is this just market rumor?
Last month during the company’s analyst call, Infineon CEO Reinhard Ploss intimated that negotiations over the €9 billion (about $10.1 billion) deal were in the final stages. Ploss said Infineon had made progress with antitrust clearances, and that it was in constructive dialog with CFIUS. He had also said, “We have a very good understanding about the requirements of U.S. government, what they expect. And we are working together with them in order to resolve that.”