On September 15, 2022, President Biden issued an Executive Order that provides direction to the Committee on Foreign Investment in the United States (“CFIUS”) regarding some of the factors it should consider when evaluating the national security risks posed by transactions within the jurisdiction of CFIUS.[1] Although, in many ways, the Executive Order simply codifies the priorities and areas of interest on which people familiar with CFIUS understand CFIUS is focused, the Executive Order puts market participants on clear notice that CFIUS will scrutinize transactions that implicate such priorities and areas of interest.
Continue Reading President Biden Issues CFIUS-Related Executive Order Regarding Evolving National Security Landscape
Foreign Investment
3 Foreign Investment Issues Affecting Cross-Border Deals
By Chase D. Kaniecki & William S. Dawley on
Cleary Gottlieb partner Chase Kaniecki and associate Will Dawley co-authored an article titled, “3 Foreign Investment Issues Affecting Cross-Border Deals,” which was published by Law360.
In the article they provide a summary of the recent developments in the FDI review regimes in the EU and the U.K. and highlight three of the…
New Export Controls on Semiconductor and Gas Turbine Engine Technologies Expand CFIUS Mandatory Notification Requirements
By Chase D. Kaniecki & Pete Young on
The U.S. Department of Commerce, Bureau of Industry and Security (“BIS”) recently published an interim final rule imposing export controls on additional technologies that satisfy the criteria pertaining to emerging and foundational technologies under the Export Control Reform Act of 2018 (“ECRA”).[1] …
Continue Reading New Export Controls on Semiconductor and Gas Turbine Engine Technologies Expand CFIUS Mandatory Notification Requirements
CFIUS 2021 Annual Report – Five Key Takeaways
By Chase D. Kaniecki & Pete Young on
Posted in Foreign Investment, U.S.
The Committee on Foreign Investment in the United States (CFIUS) recently released its 2021 Annual Report, which provides important information and statistics about covered transactions reviewed by CFIUS in 2021 and the underlying implications for foreign investors.[1] …
Continue Reading CFIUS 2021 Annual Report – Five Key Takeaways
Global Merger Control and Foreign Direct Investment Considerations Associated with Cross-Border Transactions
Posted in Cross-border M&A, Foreign Investment
Recent developments regarding global competition enforcement and foreign direct investment, or FDI, review regimes have created uncertainty for cross-border transactions. Specifically, global merger control authorities have become increasingly aggressive in “calling in” transactions under so-called “voluntary” regimes and a number of FDI review regimes recently have been established or expanded. These developments have resulted in…
U.S. Federal Judge Finds Probable Cause for Conspiracy to Violate U.S. Sanctions and to Defraud the United States in First Published Opinion Discussing U.S. Sanctions Violations Involving Use of Cryptocurrency
In a recent opinion, U.S. Magistrate Judge Zia M. Faruqui of the U.S. District Court for the District of Columbia held that there is probable cause to find that a U.S. citizen-defendant violated U.S. sanctions by funneling cryptocurrency to a payments platform that the defendant operated in a “comprehensively sanctioned country.”…
Continue Reading U.S. Federal Judge Finds Probable Cause for Conspiracy to Violate U.S. Sanctions and to Defraud the United States in First Published Opinion Discussing U.S. Sanctions Violations Involving Use of Cryptocurrency
Support for “Reverse CFIUS” Outbound Investment Screening Regime Grows
By Chase D. Kaniecki & Pete Young on
U.S. Secretary of Commerce Gina Raimondo recently expressed support for a screening regime to review outbound investments.[1] This, as well as similar statements from the White House and the passage of legislation calling for such a process earlier this year, signals that certain outbound investments could be subject to U.S. regulatory review and approval in the near future.[2] …
Continue Reading Support for “Reverse CFIUS” Outbound Investment Screening Regime Grows
Italy Further Broadens Its FDI Regime
On March 21, 2022, the Italian Government enacted a law-decree (“Decree”) to address the economic and humanitarian effects of the ongoing Ukraine crisis.[1]
The Decree further broadens Italy’s foreign direct investments (“FDI”) regime, by giving the Government the permanent power to review (a) acquisitions of controlling stakes by European Economic…
First Review Of The EU FDI Screening Regulation
By Cleary Gottlieb on
The European Commission (“EC”) recently published its first annual report on the new European cooperation mechanism regarding the screening of foreign direct investment (“FDI”) into the EU (the “Report”). The Report shows that four out of every five FDI filings screened at the EU level were quickly resolved within Phase I, while the remaining filings…
Updates to the Critical and Emerging Technologies List Signal Additional Areas of Focus
By Chase D. Kaniecki & Pete Young on
The U.S. National Science and Technology Council (NSTC)[1] recently published an updated list of critical and emerging technologies (CETs) as part of an ongoing effort to identify advanced technologies that are potentially significant to U.S. national security.
Continue Reading Updates to the Critical and Emerging Technologies List Signal Additional Areas of Focus