CFIUS to Refer Magnachip Deal to President
The Committee on Foreign Investment in the U.S. plans to refer a heavily scrutinized transaction to President Joe Biden after it couldn’t identify measures to mitigate the deal’s national security risks. The proposed acquisition of South Korea-based Magnachip Semiconductor Corp. by Beijing-based Wise Road Capital (see 2106150039) could damage U.S. national security, CFIUS told both companies Aug. 27, according to Magnachip’s Aug. 30 Securities and Exchange Commission filing. Although Magnachip and Wise Road had proposed mitigation measures to CFIUS, the committee said it couldn’t agree to any measures that “would adequately mitigate the identified risks.”
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
CFIUS told both companies they can still “provide additional information … for consideration, including proposals to permanently mitigate the identified national security risks.” Magnachip said it is “assessing next steps. There can be no assurance that the Company and Parent will develop or agree to any proposals that would result in CFIUS clearance.”