When In Doubt, Deal Makers Should Assume CFIUS Is Interested

The inter-agency Committee on Foreign Investment in the United States (CFIUS) is charged with reviewing transactions that could result in control of a U.S. business by a foreign entity. Where the Committee finds a threat to U.S. security, the transaction may be subject to “mitigation requirements” or referral for further review. Last month CFIUS published its annual report for 2013, the latest year for which it has compiled data. An article by Kaye Scholer attorneys analyzes the report and makes some recommendations to companies that are contemplating involvement in deals where CFIUS could be interested. When in doubt, they advise, assume they will be interested. Consider in advance possible mitigation moves in case the deal is flagged.