US LED company Cree says that the Committee on Foreign Investment in the United States (CFIUS) is unlikely to approve the agreed sale of its Wolfspeed Power and RF division (which includes the SiC substrate business for power and RF) to Infineon.
This is based on recent communications with CFIUS. The parties are now exploring whether there are alternatives to modify the transaction to mitigate or address the regulatory concerns, which if agreed by the parties, would involve a refiling with CFIUS.
There is no assurance that the parties could achieve a transaction structure which would obtain CFIUS clearance. As a result, pending the outcome of these efforts, the likelihood or timing of closing the transaction is uncertain.