By Matt Grossman

Magnachip Semiconductor Corp. said Wednesday that it received a federal government order requiring the company not to complete its merger with Wise Road Capital Ltd., a Chinese private-equity firm, until a review is concluded.

Magnachip, a semiconductor company incorporated in Delaware, said it received the interim pause order Tuesday from the Committee on Foreign Investment in the U.S., which is reviewing the merger. The order requires Magnachip not to complete the merger without further word from the government, the company said.

Magnachip said it is assessing the impact of the order and will likely postpone a stockholders' meeting about the merger that was scheduled for Thursday.

In March, Magnachip said that under the planned $1.4 billion all-cash deal its investors would receive $29 for each share. The deal was expected to close in the second half of the year.

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

06-16-21 0704ET