Cypress Semiconductor (NASDAQ:CY) news for Friday concerning a potential hurdle for its deal with Infineon Technologies has CY stock falling.
The deal between the two companies would have Infineon Technologies acquiring Cypress Semiconductor. This would have had it picking the company up for $8.7 billion. The problem stems from regulators.
According to inside sources in contact with Bloomberg, U.S. national security officials are suggesting that President Donald Trump should shut the deal down. The sources of the Cypress Semiconductor news claim that the deal represents a national security risk.
These inside sources claim that Infineon Technologies has been working to move forward with the deal. That includes attempts to negotiate with the government. However, it appears that it has been unsuccessful in these attempts.
It’s still currently unknown why the national security officials are wanting to get in the way of the deal. Even so, there are some possible reasons. One of these has to do with Infineon Technologies connections. While the company is based out of Germany, much of its revenue comes from China, which officials are hesitant to give over American tech to.
Cypress Semiconductor and Infineon Technologies have been working on this deal for some time now. The Cypress Semiconductor news was originally announced back in June 2019. At that time, the companies said they were expecting it to close during late 2019 or early 2020. If the Bloomberg reports are true, it looks like it will be missing that range.
CY stock was down 14.65% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.