NEUBIBERG (dpa-AFX) - Cree, Inc. (CREE) announced it will terminate the agreement to sell its Wolfspeed Power and RF division to Infineon Technologies AG. Cree and Infineon have been unable to identify alternatives which would address the national security concerns of the Committee on Foreign Investment in the United States, and as a result, the proposed transaction will be terminated. The termination of the transaction will trigger a termination fee of $12.5 million being paid to Cree.
Chuck Swoboda, Cree chairman and CEO, said: 'In light of this development, we are going to shift our focus back to growing the Wolfspeed business. We believe investing to grow all three businesses will create the most value for our shareholders.' Wolfspeed will now be reported as a separate segment of Cree's continuing operations.
Cree will provide a complete review of its third quarter results and fourth quarter outlook on its regularly scheduled financial results call on April 25.
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