Confirmation of termination of purchase! The CREE Wolfspeed sale failed!

CREE (CREE) announced in February 16th, will terminate the Wolfspeed power and the RF Department ("Wolfspeed") the sale, including silicon carbide (FSE:IFX / OTCQX:IFNNY) of the power supply, and the application of RF sapphire substrate business. Cree and Infineon are unable to identify alternatives to the national security concerns of the US Foreign Investment Committee (CFIUS), so the proposed transaction will be terminated.

"We are disappointed with the failure of Wolfspeed to sell to Infineon," said Chuck, chairman and CEO of Cree Swoboda. "In view of this development, we will shift our focus to the growth of Wolfspeed business. This year, Wolfspeed has been doing well because our clients have been further aware of the value of our unique technology and are on a great road as part of Cree. The strength of our balance sheet and improved operating cash flow enable us to invest in Wolfspeed while continuing to pursue our LED and lighting growth plan. We believe that the growth of investment in all three businesses will create the greatest value for shareholders.

Chuck Swoboda added: "I am very grateful to Dr. Ploss and other members of the Infineon team for their great time and commitment to the successful completion of the exchange."."

Although Cree, Infineon did not explain why the U.S. government has reservations about the deal. Nor did the CFIUS point out any mitigation practices for this transaction for specific national security risks. But earlier reports said Wolfspeed produced devices using military - purpose gallium nitride (GaN). DLA Piper LLP Brian Chilton pointed out that the supervision of lawyers, it shows that the U.S. government will protect the national defense industry attaches great importance to technology, the United States does not want to lose the advantages, so whether the buyer is a German manufacturer or China manufacturers will be rejected.

Termination of the transaction with Infineon will trigger a termination fee of $12 million 500 thousand to Cree. Wolfspeed will now be reported as an independent part of Cree's continuing operations as the transaction terminates and Cree decides to focus on running the Wolfspeed business.

Last July, Infineon Technologies and Cree announced that it has signed a definitive agreement to acquire Wolfspeed, Infineon and RF power owned by Cree (RF), the amount of purchase of this full cash payment of approximately $850 million.

Wolfspeed is located in the U.S. state of North Carolina Research Triangle Park (Research Triangle Park), nearly 30 years belonging to Cree's, is a major supplier of SiC power and GaN-on-SiC RF power solutions, its core ability includes SiC single crystal gallium nitride layer of SiC wafer substrate manufacturing and the RF power should be used. Infineon CEO Reinhad Pross (Reinhard Ploss) has said that Wolfspeed production of silicon carbide chip in the next few years will gradually replace the traditional chip, especially in the electric and hybrid automotive market.

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