Cree provided an update regarding its definitive agreement to sell its Wolfspeed Power and RF division, which includes the silicon carbide substrate business for power, RF and gemstone applications, to Infineon Technologies AG. Based on recent communications with the Committee on Foreign Investment in the United States (CFIUS), the parties believe the transaction in its current form is not likely to be approved by CFIUS. The parties are exploring whether there are alternatives to modify the transaction to mitigate or address the regulatory concerns, which if agreed by the parties, would involve a refiling with CFIUS. There is no assurance that the parties could achieve a transaction structure which would obtain CFIUS clearance. As a result, pending the outcome of these efforts, the likelihood or timing of closing the transaction is uncertain.
