CFIUS HAS NEW TEETH: FOREIGN INVESTMENT INTO THE US UNDER NEW LEVEL OF SCRUTINY
Legal Era|January 2020
In light of recent changes to the CFIUS regulatory regime, it is imperative that legal counsel to parties involved in transactions where foreign persons may be acquiring equity interests in US businesses pay careful attention to whether a CFIUS notification filing may be required
CFIUS HAS NEW TEETH: FOREIGN INVESTMENT INTO THE US UNDER NEW LEVEL OF SCRUTINY

In late September of 2019, the Committee on Foreign Investment in the United States (“CFIUS”) published proposed rules (the “Proposed Rules”) seeking to implement the provisions of the Foreign Investment Risk Review Modernization Act of 2018 (“Act”), a new piece of US legislation which expands the scope of CFIUS’ coverage to include certain non-controlling investments in US businesses that implicate certain “critical technologies”. The Proposed Rules significantly expand the definition of what constitutes a covered investment under the Act and clarify certain limitations imposed with respect to investments in real estate. The Proposed Rules are subject to public comment but are slated to be finalized by February of 2020.

Pre-Act

Prior to the enactment of the Act, the US Defense Production Act of 1950 empowered the President of the United States, acting through CFIUS, to retain the authority to review mergers, acquisitions, and takeovers by or with any foreign person which could result in foreign control of any person or entity engaged in matters relating to national security or certain critical industries or infrastructure of the US.

The status quo prior to the Act was such that parties to a M&A deal with a relevant nexus to the US could voluntarily file with CFIUS if there was a reason to believe that the transaction could convey control of the US business to a foreign investor and could implicate US national security concerns. This voluntary filing structure remained in place notwithstanding CFIUS’ baseline right to initiate its own review, at any time, of transactions which it independently deemed to be questionable from a US national security perspective.

The Act

Denne historien er fra January 2020-utgaven av Legal Era.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra January 2020-utgaven av Legal Era.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA LEGAL ERASe alt
If You Think Positive Covid Is A Big Opportunity
Legal Era

If You Think Positive Covid Is A Big Opportunity

Senior Vice President and Head of Legal, ESSAR CAPITAL, Badrinath Durvasula, holds forth on his professional journey, the essence of leadership, working from home, books and more…

time-read
10+ mins  |
December 2020
PROJECT DEVELOPMENT
Legal Era

PROJECT DEVELOPMENT

JOINT VENTURE TRANSACTIONS

time-read
10+ mins  |
December 2020
NEW ARBITRATION RULES
Legal Era

NEW ARBITRATION RULES

PUBLISHED BY THE LONDON COURT OF INTERNATIONAL ARBITRATION (LCIA) AND INTERNATIONAL CHAMBER OF COMMERCE (ICC)

time-read
6 mins  |
December 2020
M&A in the time of COVID and beyond
Legal Era

M&A in the time of COVID and beyond

What is clear for those engaging in cross-border M&A is that countries around the world are becoming increasingly protective of their economies and industries, with new rules being introduced and existing rules being more widely applied

time-read
6 mins  |
December 2020
SWITZERLAND A DIFFERENTIATED APPROACH TO FRAUD
Legal Era

SWITZERLAND A DIFFERENTIATED APPROACH TO FRAUD

Swiss law interprets the offense of fraud in a special way where in addition to the characteristics of deception and damage as known in many jurisdictions, a qualified lie, i.e. a malicious approach, is required

time-read
5 mins  |
December 2020
JOINT VENTURE DISPUTES MEDIATING
Legal Era

JOINT VENTURE DISPUTES MEDIATING

Mediation has shown itself to be a powerful tool for bringing a speedy and effective end to crossborder disputes while preserving the commercial relationship between them.

time-read
7 mins  |
December 2020
Recognition of HONG KONG INSOLVENCY PROCEEDINGS IN MAINLAND CHINA
Legal Era

Recognition of HONG KONG INSOLVENCY PROCEEDINGS IN MAINLAND CHINA

A TEST CASE IN THE MAKING?

time-read
8 mins  |
December 2020
CONFIDENTIALITY IN ARBITRATION: RECENT DEVELOPMENTS IN SINGAPORE
Legal Era

CONFIDENTIALITY IN ARBITRATION: RECENT DEVELOPMENTS IN SINGAPORE

Two recent developments in Singapore case law and legislation reflect a willingness to preserve confidentiality related obligations in all arbitrations

time-read
5 mins  |
December 2020
ESSENTIAL GOODS SERVICES UNDER IBC
Legal Era

ESSENTIAL GOODS SERVICES UNDER IBC

WHAT DOES IT ESSENTIALLY MEAN?

time-read
6 mins  |
December 2020
A BIDEN ADMINISTRATION'S NEW VISION FOR THE AMERICAN WORKPLACE
Legal Era

A BIDEN ADMINISTRATION'S NEW VISION FOR THE AMERICAN WORKPLACE

A LOOK AT THE KEY CHANGES PRESIDENT-ELECT BIDEN IS LIKELY TO MAKE ONCE HE TAKES OFFICE

time-read
7 mins  |
December 2020