New Proposed Regulations for CFIUS Review of Foreign Investment in the United States
April 22, 2008
The Department of the Treasury yesterday proposed new regulations to govern national security reviews by the Committee on Foreign Investment in the United States (“CFIUS”) of acquisitions of U.S. businesses by non-U.S. acquirors. The proposed regulations – the most significant changes to the CFIUS rules since their initial promulgation in 1991 – do not go as far as some had feared in tightening review of foreign acquisitions, but they nevertheless expand the scope and nature of such reviews in limited but important ways. The attached alert memorandum highlights the key considerations for parties to potential cross-border investments into the United States and provides a detailed synopsis of the most significant changes.
The proposed regulations are now subject to a 45-day comment period, and the date of the final regulations remains uncertain.
