The United States attracts investments from around the world, but increasingly, U.S. regulators are postured to guard against foreign direct investments that have the potential to threaten national security. Accordingly, the Committee on Foreign Investment in the United States (CFIUS) is empowered with broad authorities and extensive resources to disrupt – and even kill or unwind – mergers, acquisitions, takeovers, and non-controlling investments from foreign sources should the Committee perceive risks to U.S. national security interests. For a business making the investment – or seeking to attract investment, anticipating and reducing the risks perceived by CFIUS agencies in advance of the filing with the Committee increases the likelihood of obtaining approval. And that’s where The Chertoff Group delivers significant value.
Mitigation arrangements are now required by CFIUS for many foreign investments – not only by individuals and/or entities from countries of concern, but also by corporations and entities such as sovereign wealth funds from friendly and allied countries. The mitigation of potential risks involved with foreign investments is not just a legal matter, although the agreement is legally binding, but also a stakeholder policy matter. The view of “risk” often differs from one CFIUS agency to another, making it challenging for investors to gauge what concerns may surface during the CFIUS review process. The Chertoff Group works with clients and their CFIUS counsels early in the review process, applying our experience in national security policy and regulations to provide insights and options that help address U.S. Government concern and establish trust.
With our unique combination of regulatory expertise and insights into CFIUS agency perspectives, The Chertoff Group can work with clients to shape mitigation agreements that meet both business and U.S. Government needs.