Tagged: CFIUS

Consideration of Evolving National Security Risks by CFIUS

On September 15, 2022, President Biden issued Executive Order 14083 (“EO 14083”) which the White House describes as a “first-ever presidential directive defining additional national security factors for CFIUS to consider in evaluating transactions.” Rumors of its publication have been circulating in Washington, D.C. for months, and for those that follow foreign investment activity in the United States, it is revealing any time the Executive Branch speaks publicly about CFIUS. Click here for a few insights into how EO 14083...

The UK National Security and Investment Act 2021: A New Regime For Acquisition and Investment Transactions: Update

There have been a number of key developments in the evolution of the UK’s national security regime since our e-bulletin earlier this year (UK to Adopt New Powers Over M&A Activity To Protect National Security). First and foremost, the National Security and Investment Bill has now taken its place on the UK Statute Book as the National Security and Investment Act 2021 (the “Act”). The new legislation is set to come into force on the 4th January 2022. The Act...

U.S. National Security Issues in Cross-Border Food, Beverage & Agribusiness Deals

On October 28, 2021, a bipartisan group of U.S. Senators introduced the Food Security is National Security Act of 2021 (the “Act”). Among other things, the Act would require the Committee on Foreign Investment in the United States (“CFIUS”) to consider the “potential effects of [certain foreign investment transactions] on the security of the food and agriculture systems of the United States, including any effects on the availability of, access to, or safety and quality of food.” In other words, certain foreign...

UK to Adopt New Powers Over M&A Activity to Protect National Security

Draft legislation currently being debated in the UK Parliament will introduce a new regime similar to that of the Committee on Foreign Investment in the United States (“CFIUS”) while maintaining the UK’s position as an attractive forum for business and an openness to foreign investment. While the National Security and Investment Act (“NSIA”) will not come into effect until later this year, it will have retroactive effect from November 12, 2020. It is therefore important that entities contemplating any transaction...

How CFIUS Foreign Transaction Monitoring Broadened

2020 is a year we will not soon forget. 2020 was also a year full of dramatic changes for the Committee on Foreign Investment in the United States. The committee’s mandate remained the same — review foreign investments in U.S. businesses to protect national security. When necessary, the president can prohibit a proposed transaction, or require a foreign person to divest their interest in a U.S. business on national security grounds. However, important modifications to the CFIUS process were introduced...