Bloomberg BNA Publishes Akin Gump Article on Legislation to Expand CFIUS Jurisdiction
Bloomberg BNA’s International Trade Daily Bulletin has published the article “Proposed Bill Seeks to Expand Scope of U.S. Foreign Investment Reviews,” written by Akin Gump international trade partners Kevin Wolf and Tatman Savio and counsel Christian Davis.
The article analyzes a bill introduced recently in the U.S. Senate that would “dramatically expand the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS).” Along with a companion bill in the House of Representatives, the legislation “would impose mandatory reporting requirements for certain types of transactions and introduce filing fees to the notification process.”
The article proceeds to provide some background on how CFIUS works and then discusses key provisions of the bill. Wolf, Savio and Davis write that it would “substantially expand the definition” of the type of transaction that can be reviewed. It would also exempt certain countries from review, create a new process for voluntary and mandatory declarations “that would apparently contain high-level information” regarding a transaction and extend the initial review period for proposed transactions.
The authors conclude by noting that, if the bill were to become law, “it would heighten scrutiny of deals involving non-U.S. buyers, especially those from China.” They add that it could also “help clarify the scope and parameters of CFIUS review, aiding potential investors in structuring deals to minimize national security concerns.”
To read the full article, please click here.