Infineon Is Getting a Good Asset in Cypress Semiconductor
If German chipmaker Infineon (OTC: IFNNY) gets the sign-off from shareholders and regulators, the second-quarter 2019 report will be the last for Cypress Semiconductor (NASDAQ: CY). After spending years transforming itself from a commodity semiconductor outfit into a leading connectivity provider powering a myriad of devices from smartwatches to auto technology, Cypress will become a subsidiary of Infineon as early as the fourth quarter 2019. With the run nearly over, it's time for owners of the stock to begin planning an exit.
Of course, there's always the chance for deals like this to fall through. Remember when Qualcomm (NASDAQ: QCOM) tried to buy Dutch chip specialist NXP Semiconductors (NASDAQ: NXPI), only to be stymied by the Chinese government (China is a primary market for the industry, thus giving regulators there a say on the matter)? That $44 billion deal was much larger than this $10 billion one, and Germany isn't embroiled in a trade war with China (Qualcomm's home market) like the U.S. is. So the chances of the Cypress deal closing seem decidedly better.
But nothing's certain in the world of business and finance, so though financials for the first half of 2019 are likely Infineon's problem, here they are in case investors get dealt a surprise.
Quelle Fool.com
