CFIUS Review Expanding to Cover Targets Located Near Sensitive Facilities

Two recent CFIUS investigations forcing Chinese companies to divest interests in Nevada mines located near U.S. military installations indicate that CFIUS may be expanding its review to cover businesses with no connection to national security that are merely located near sensitive sites. Foreign companies contemplating the acquisition of U.S. targets may wish to enhance their due diligence to determine whether target operations may be located near sensitive government facilities, even where the targets are not themselves engaged in activities related to national security.