The proposed merger between Magnachip Semiconductor and Wise Road Capital (see 2106150039) was likely never going to avoid U.S. scrutiny, a trade lawyer said, and it is puzzling why the two companies didn’t voluntarily submit a declaration to the Committee on Foreign Investment in the U.S. Scott Flicker, who advises clients on CFIUS matters for Paul Hastings, said the decision was either a mistake or a calculated decision by the two companies’ lawyers.
Fenwick & West will open an office in Washington, D.C., adding two partners for the new office, the firm announced on Aug. 31. Thomas Ensign and Melissa Duffy will both serve as partners in Fenwick's Antitrust and Trade Regulation practice. Duffy, who comes from Dechert, "advises on export controls, sanctions, trade policy, programs under the Office of Foreign Assets Control (OFAC), regulation of emerging technologies, digital trade, CFIUS and national security issues involving U.S. agencies," Fenwick said. Ensign is an antitrust adviser on issues including intellectual property agreements, distribution arrangements and joint ventures. Fenwick, which says it concentrates on serving the technology and life sciences industries, has offices in California, New York City, Seattle and Shanghai.
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.”
Export Compliance Daily is providing readers with the top stories for Aug. 16-20 in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
A former assistant U.S. trade representative for services and investment is joining Rock Creek Global Advisors as a managing director. A founder of the firm noted that Daniel Bahar led in digital trade policy and negotiations and represented USTR on the Committee on Foreign Investment in the United States (CFIUS). "His experience in negotiating investment rules with China, developing cutting-edge digital trade policy, and dealing with the intersection of national security and global commerce will be of great benefit to our clients," Daniel Price said.
The Committee on Foreign Investment in the U.S. should review all U.S. investment transactions by Brazilian meatpacking conglomerate JBS S.A., its holding company J&F Investimentos and any entity owned by the company’s owners Wesley and Joesley Batista, two senators said. The companies use “criminal practices to obtain the funds to acquire U.S. companies,” which may jeopardize U.S. economic security and undermine U.S. efforts to combat corruption, Sens. Bob Menendez, D-N.J., and Marco Rubio, R-Fla., said in an Aug. 13 letter to Treasury Secretary Janet Yellen. “With JBS S.A. planning further U.S. acquisitions in the near future,” the senators said, “the need for a thorough investigation is urgent.”
Several companies recently disclosed their filings with the Committee on Foreign Investment in the U.S. or updated the status of their ongoing CFIUS reviews. Transactions involve Chinese technology companies, an agricultural technology business and a workplace learning technology provider.
Export Compliance Daily is providing readers with the top stories for Aug. 2-6 in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The U.S. needs to expand export and investment restrictions to prevent China from acquiring advanced semiconductor equipment and other sensitive technologies, former national security officials told Congress this week. One official specifically said the Commerce Department’s Bureau of Industry and Security should impose export controls more actively. Another said the Committee on Foreign Investment in the U.S. needs more resources.
Export Compliance Daily is providing readers with the top stories for July 26-30 in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.