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China Gives Final Key Approval for German Chip Giant Infineon to Buy U.S. Rival

By Ding Yi / Apr 08, 2020 01:04 PM / Business & Tech

Photo: VCG

Photo: VCG

German chip maker Infineon Technologies said Tuesday that it has obtained approval from China’s anti-trust regulator, the State Administration for Market Regulation, for its proposed takeover of American rival Cypress Semiconductor.

The Chinese approval is the final regulatory hurdle Infineon needed to clear for the acquisition. Previously, both the European Commission and the Committee on Foreign Investment in the United States had given the green light.

In a separate statement, Cypress said that it expects the merger to close on or about April 16, 2020, in accordance with the terms of the acquisition agreement.

Last June, Infineon agreed to acquire Cypress for 9 billion euros ($8.7 billion), which the German company said could help it become a leader in automotive powertrains, the main component that generates power in a vehicle.

As tech companies conduct more business in China, Beijing’s approval is often required before closing proposed mergers to ensure they do not adversely distort the Chinese market, even though many of these transactions do not involve Chinese firms.

Contact reporter Ding Yi (yiding@caixin.com)

Related: State-Backed Chipmaker Set to Raise $713 Million


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