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March 9, 2020, 7:56 p.m. EDT

Cypress Semi stock explodes 45% higher after CFIUS blesses acquisition

Cypress Semiconductor Corp. shares jumped 45% in after-hours trading Monday after the company revealed that it had received clearance from the Committee on Foreign Investment in the United States, or CFIUS, to be acquired by a German company. Cypress shares tanked last week after Bloomberg News reported that CFIUS had recommended to President Donald Trump that he block Infineon Technologies AG's (FRA:DE:IFX) planned acquisition for national-security concerns, citing anonymous sources. Trump and CFIUS have blocked acquisitions of chip makers like Cypress by Asian companies in recent years, due to concerns about Chinese ownership of high-tech intellectual property. Cypress noted in its announcement that it must still receive clearance from Chinese regulators among other closing conditions. Infineon agreed to acquire Cypress for $23.85 a share in June, but shares fell from near that level to $15.28 at Monday's close after the Bloomberg report. After Cypress announced the clearance Monday afternoon, shares topped $22 apiece in extended trading.

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