Getting CFIUS Approval for Investments From and Deals With Foreign Businesses

This CLE course will guide counsel to U.S. businesses seeking and accepting foreign investments on the Committee on Foreign Investment in the United States (CFIUS) approval process. The panel will discuss what parties need to do to be well prepared to get CFIUS approval for investments and deals. The panel will examine the recently issued CFIUS regulations and the requirements for mitigation agreements, as well as offer best practices for CFIUS approval.

With recent regulatory changes and heightened attention on national security, CFIUS continues to be a hurdle for cross-border M&A and counsel involved in cross-border deals should consider what it takes to get CFIUS approval as they structure these deals.

For example, U.S.-China relations have been a political hot topic over the last few years and have resulted in heightened scrutiny of Chinese investment in U.S. businesses--including a number of failed deals. However, this does not preclude deals from getting approved.

CFIUS approval for deals may require some mitigation in order to address national security concerns. The review process may also involve parallel mitigation processes. For example, deals involving foreign investment in a cleared government contractor that handles classified information typically requires a mitigation agreement with the Defense Counterintelligence and Security Agency (DCSA). Certain telecom transactions may also require mitigation conditions on Federal Communications Commission licenses. Anticipating and preparing for mitigation requirements is a key component of effective cross-border deal planning.

Companies and their counsel must anticipate potential CFIUS and other national security regulatory concerns and be prepared to structure successful deals that meet the parties' goals for the transaction.

Listen as our authoritative panel of CFIUS counsel examines what parties need to do to be well prepared to get CFIUS approval for investments and deals. The panel will examine the recently issued CFIUS regulations, related national security regulatory processes, and issues pertaining to mitigation agreements. The panel will offer best practices for getting investments/deals approved by CFIUS.