Key Takeaways for 2020 and Beyond
- The vast majority of CFIUS filings will remain voluntary, and important considerations remain for voluntarily filing, including CFIUS’ expanded jurisdiction and increased attention to non-notified transactions.
- CFIUS’ jurisdiction and sensitivity will remain aligned with export control laws, and both foreign investors and U.S. companies considering business combinations should develop or maintain fundamental competency in the subject area.
- CFIUS is expected to have greater resources and appetite for enforcing mitigation agreements; therefore, companies must prioritize understanding and complying with both new and existing agreements.
- CFIUS’ increasing interest in companies that collect U.S. citizen information is likely to result in increased mitigation to shield foreign investors from accessing that information.
- Parties contemplating covered transactions in the information and communications technology sector should expect more focus on supply chain restrictions and vendor review in potential mitigation agreements.
- The Committee remains primarily concerned with the national security threats posed by China, and thus both Chinese investors and non-Chinese investors with significant Chinese connections are likely to be subject to increased scrutiny.
- The majority of CFIUS’ requirements will continue to apply to “excepted investors” from “excepted countries” even if CFIUS establishes, as expected, a “white list” of such investors and countries.
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