Shares of Cypress Semiconductor (NASDAQ:CY) climbed 1% in March, according to data from S&P Global Market Intelligence . The American semiconductor stock saw dramatic swings because of news regarding its merger with German-based Infineon (OTC:IFNN.Y), but it closed out the month with a small gain.
News emerged on March 6 that the Committee on Foreign Investment in the United States (CFIUS) were encouraging the Trump administration to block Infineon's acquisition of Cypress Semiconductor for national security reasons. However, Cypress announced on March 9 that it had received clearance from CFIUS to move forward with the deal.
Infineon reached terms to acquire Cypress at a price of $23.85 per share last June, and the smaller chip company's stock proceeded to consistently trade in that range before reports that the acquisition might be blocked by the CFIUS and the Trump administration. Cypress stock fell to $15.28 per share following the indications that U.S. regulators might hold up the deal, but it quickly bounced back after the semiconductor company issued its press release several days later that confirmed that the CFIUS review had been completed and found no unresolved national security concerns stemming from the deal.
Infineon's acquisition of Cypress Semiconductor appears to be on track to go through, but it does face some additional regulatory hurdles. Most notably, China's State Administration for Market Regulation will approve the deal. While much of the stock market is experiencing high levels of volatility over situations related to the novel coronavirus pandemic, Cypress Semiconductor's share price will likely be relatively steady unless there's news of more potential acquisition hurdles.