Last week, the former Principal Deputy Chief of the DoJ’s Foreign Investment Review Section published an article warning that the National Security Council is experiencing “institutional stress” — a dynamic that could erode policy predictability and introduce new national security risks. Details inside.
A decade ago, FDI filing analysis was relatively straightforward. But Mubadala SVP Grigore Alexandru says that’s no longer the case. For sophisticated global investors, he says, reputational risk has become a core underwriting variable, directly affecting deal velocity, valuations, more.
Over the last week, we’ve been inundated with inquiries from readers about what it means for CFIUS operations, national security reviews, and ongoing filings. Two repeated questions we keep hearing: What happens to new submissions, and how likely are approvals during the shutdown?
As the DoJ’s new data security regime is being finalized, we thought it prudent to explore steps that companies can take to prepare now. So we turned to two experts with experience addressing similar national security, compliance and oversight matters. Their recommendations are inside.
China’s strategy of tapping commercial technologies to improve military capabilities is well known. But how those “Military-Civil Fusion” efforts have been cataloged and classified by the U.S. government is perhaps less well understood. This week, we provide a primer on definitions and classifications.
Stephen Heifetz, one of our most outspoken Editorial Advisory Board members, does not mince words; he’s called the structure of CFIUS a “nightmare,” and has described the Committee’s machinery as “a long and painful grind.” He’s now penned a CFIUS parable we found impossible to withhold from publication.
Last week, reports emerged that France would strengthen its foreign investment rules. In addition to lowering the scrutiny threshold permanently, France is also expected to expand the scope of investments and business activities subject to reviews. Details and action items inside.
CFIUS’ annual reports to Congress are eagerly anticipated by stakeholders. But Berkeley Research Group managing director Harry Broadman says the reports provide “scant economically meaningful information” about CFIUS’ actions. Broadman’s thoughts on improving those reports are inside.
Oliver Dowden, Deputy Prime Minister of the United Kingdom, recently said that one of his objectives was to make the country’s FDI regime “boring, certain and predictable,” so that lawyers don’t get rich from it. According to Guest Columnist Stephen Heifetz, that might be easier said than done.
The drumbeat regarding national security risks posed by TikTok has reached a fever pitch. But according to Thomas Feddo, who served as the first-ever Assistant Secretary for Investment Security at the Treasury Department, the risks remain “unacceptably unresolved.” His insights are inside.
In a provocative demonstration that it scrutinizes all types of transactions, no matter their origin, CFIUS has reportedly been vetting the proposed $1 billion sale of bankrupt crypto lender Voyager Digital’s assets to Binance. Details, context, and why the development matters, are inside.
As we reported last week, CFIUS reviewed a record number of transactions in 2021, according to the Committee’s latest report. For additional insights, we turned to Grigore Alexandru, who broke down the DoD’s unclassified CFIUS procedures for us earlier this year. His “top 10” takeaways are inside.
This week, two CFIUS experts explain the Committee’s decision-making process regarding non-notified transactions. Interestingly, they note that CFIUS doesn’t always notify parties that it won’t pursue a transaction. Inside: What to do when CFIUS stops engaging, and more.
As we’ve reported extensively, CFIUS is increasingly utilizing mitigation agreements to resolve national security risks. This week, two experts provide recommendations that organizations should consider as they work through the mitigation agreement process.