US technology company Intel has agreed to buy the wireless unit of German counterpart Infineon for $1.4bn (£905m).

The deal had been widely anticipated, however Infineon had been expected to obtain a higher price for the business which makes chips for Apple's iPhones.

Infineon's share price fell 3.7%, making it the day's worst performer on Monday in Germany's Dax index.

The news follows Intel's announcement on August 19 to buy security company McAfee for $7.68bn.