What is the CFIUS process?
CFIUS is an interagency committee authorized to review certain transactions involving foreign investment in the United States and certain real estate transactions by foreign persons, in order to determine the effect of such transactions on the national security of the United States.
How long is the CFIUS process?
REVIEW PROCESS AND TIMELINE For both declarations and notices, CFIUS will also typically request additional information via Q&A during the review. Following the initial submission, the declaration process typically takes approximately five to six weeks and the notice process typically takes up to three to five months.
Can CFIUS unwind a transaction?
In the most extreme cases, CFIUS can recommend that the president issue an executive order forcing the parties to unwind the transaction after closing.
What is a CFIUS declaration?
CFIUS regulations currently require parties to submit a mandatory declaration for covered transactions that involve “critical technologies” and industries covered by 27 NAICS codes (which include military/defense industries as well as industries whose products and technologies might have broader application, such as …
Are CFIUS reviews public?
If the parties themselves publicly disclose documentary material or information filed with CFIUS, such documentary material or information may subsequently be reflected in the public statements of the Chairperson of CFIUS.
Are CFIUS decisions public?
Second, CFIUS does not have access to nonpublic information that could bring transactions to its attention.
What transactions does CFIUS apply to?
CFIUS has authority to review covered (1) control transactions, (2) investments, and (3) real estate transactions. A covered control transaction is a transaction that could result in “control” over a “US business” by a “foreign person.” It is important to understand these terms to appreciate the broad reach of CFIUS.