Infineon to Acquire International Rectifier for $3B

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Aug. 21 (Bloomberg) –- Bloomberg’s Hans Nichols reports on Infineon Technologies, Germany’s largest chipmaker, adding to its power-management technology business by agreeing to buy International Rectifier for $3B. He speaks to Manus Cranny on “Countdown.” (Source: Bloomberg)

Hans nichols joins us from berlin.

They confirmed they will do the deal.

What is power management, fill me in.

It is everything from automotive to satellite.

You have these semiconductors and these devices and what they really get is the low-power chips.

These low-power semiconductors but on a bigger level what you have is the bavarian companies getting a little slice of silicon valley.

You do have more production and more offerings for products.

When you look at what the future of energy companies is you see this from google all the way over to siemens.

All the devices that are powering, some say controlling our lives, they may be run with lower energy chips and that is what they get here.

On this real estate question, take a look at this from the ceo . here's what he had to say.

It is important for us to be in the u.s. and close to the highly innovative regions of california.

But as the ceo.

He has been on the hunt for an acquisition since he has joined the company in 2012. both boards have approved the deal.

We have a $40 cash offering per share.

That is a 51% premium.

They are paying a pretty steep price.

When you see the size of a deal there is the possibility of overlap.

Is there anything in terms of consolidation?

They are on both fronts, there have been strong hints that there will be job cuts in the california area.

They have a 4% advantage in terms of productivity.

And some of the chips that are produced in silicon valley, they have the scope and their bavaria office.

You may see some manufacturing leaving the states and heading down toward the core of the middle.

One of silicon valley's old

This text has been automatically generated. It may not be 100% accurate.

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