UPDATED. 2024-10-09 10:30 (수)
Magnachip ends merger deal with China’s Wise Road
Magnachip ends merger deal with China’s Wise Road
  • Jang Keyoung Yoon
  • 승인 2021.12.14 13:42
  • 댓글 0
이 기사를 공유합니다

US$1.4 billion deal falls through 
Magnachip to collect termination fee
Image: Magnachip
Image: Magnachip

Magnachip said on Tuesday that it has ended its merger deal with Chinese private equity firm Wise Road Capital.

The Chinese firm had planned to pay US$1.4 billion to merge with the chip company, with the pair signing the merger agreement in March.

However, Committee on Foreign Investment in the United States (CFIUS) had ordered the deal to be put on hold in June, saying at the time if needed to evaluate the deal to see if it posed risks to national security.

Two months after that, the US Treasury Department said the deal was a risk to the national security of the US.

"This course of action resulted from the inability of the parties, despite months of effort, to obtain CFIUS's approval for the merger," Magnachip and Wise Road said.

Wise Road will be paying Magnachip a termination fee of US$70.2 million __ US$51 million will be paid immediately, while the rest will be paid by March 2022.

Magnachip will also withdraw its request to evaluate the deal made to South Korea’s Ministry of Trade, Industry and Energy, it said.


댓글삭제
삭제한 댓글은 다시 복구할 수 없습니다.
그래도 삭제하시겠습니까?
댓글 0
댓글쓰기
계정을 선택하시면 로그인·계정인증을 통해
댓글을 남기실 수 있습니다.

  • 515, Nonhyeon-ro, Gangnam-gu, Seoul, Republic of Korea 4F, Ahsung Bldg.
  • 대표전화 : 82-2-2658-4707
  • 팩스 : 82-2-2659-4707
  • 청소년보호책임자 : Stan LEE
  • 법인명 : The Elec Inc.
  • 제호 : THE ELEC, Korea Electronics Industry Media
  • 등록번호 : 서울, 아05435
  • 등록일 : 2018-10-15
  • 발행일 : 2018-10-15
  • 발행인 : JY HAN
  • 편집인 : JY HAN
  • THE ELEC, Korea Electronics Industry Media Prohibiting unauthorized duplication,publishing,modification and distribution the material on this Site for any purpose.
  • Copyright © 2024 THE ELEC, Korea Electronics Industry Media. All rights reserved. mail to powerusr@thelec.kr
ND소프트