The United States attracts investments from around the world, but U.S. regulators are increasingly on guard against foreign direct investments with the potential to threaten U.S. national security. As of February 2020, the Committee on Foreign Investment in the United States (CFIUS) is newly empowered with broad authorities and expanded resources to execute its mission. Businesses with transactions involving foreign investment in a U.S. company or a foreign company with a U.S. subsidiary – particularly in the areas of critical technology, critical infrastructure, and sensitive data – should be prepared.
As of February 13th, 2020, CFIUS now has new powers to disrupt and even kill mergers, acquisitions, takeovers and non-controlling investments from foreign sources. It is now imperative to understand how your organization and investments could be impacted.
How The Chertoff Group Can Help:
• Transaction Assessments: We assess the risks associated with transactions likely to require CFIUS review.
• Structuring Transactions: We counsel clients on options to limit CFIUS-related risks and/or avoid CFIUS review.
• Mitigation Options: We advise on potential mitigation measures to address national security concerns.
• Strategic Outreach: We engage our unique relationships across the CFIUS agencies.
• Compliance Assessment and Monitoring: We assess companies’ compliance governance structures and provide third party monitoring of mitigation agreements.