Earlier this year OLED driver IC developer MagnaChip announced that it is being acquired by China-based Wise Road Capital, for $1.4 billion. A few days ago, the Committee on Foreign Investment in the United States (CFIUS) issued an interim order that blocks the deal.
This is just an interim order, but according to reports it is unlikely that the US and Korea will allow the deal to go through, at least in its preset form. The US is expanding its fight against Chinese companies acquiring technologies. Korea is also worried as MagnaChip's OLED drivers are seen to be strategic to the country's OLED industry.
Interestingly, it is reported that Magnachip also received another bid, from Cornucopia Investment Partners - which is superior to the Wise Road Capital bid. The company did not consider the new bid, and MagnaChip's investors have initiated a probe of Magnachip’s board of directors.
