Global Trade & Foreign Policy Insights

In an earlier client alert, we noted that Wise Road Capital’s proposed acquisition of Magnachip Semiconductor Corporation was on life support: the Committee on Foreign Investment in the United States (CFIUS) had issued a Due Process letter, and the transaction parties could either abandon the transaction or allow the matter to be referred to the President, who would likely block it. 

Earlier this year, Wise Road Capital, a Chinese private equity firm, entered into an agreement to purchase Magnachip Semiconductor Corporation, a South Korean chip manufacturer. On August 27, 2021, Magnachip submitted an SEC filing indicating that the Committee on Foreign Investment in the United States is preparing to block the deal.