Our international team advises domestic and international clients on the transactional, regulatory, legislative, and policy matters related to foreign investment in the U.S. and its impact on U.S. national security. Our dedicated attorneys and professionals are experienced in assisting clients with national security reviews of foreign direct investment under the Exon-Florio amendment, as administered by the Committee on Foreign Investment in the United States (CFIUS).
The Exon-Florio amendment to the Defense Production Act mandates that all mergers, acquisitions, and takeovers potentially resulting in foreign control of U.S. corporations are subject to governmental investigation and presidential action if deemed a threat to national security. Even minority stake investments by foreign investors could be deemed dominant minority ownership, affecting CFIUS analysis. Careful planning of any transaction involving foreign investment in a U.S. company requires consideration of whether to seek CFIUS review.
Our attorneys assist clients with pre-transaction due diligence, filing CFIUS notifications, working with the designated agencies during reviews, and negotiating required mitigation agreements to address perceived security risks due to foreign ownership, control, and influence. We also assist clients in post-CFIUS transaction measures, including drafting and implementing detailed compliance plans, briefing the boards of directors and key officers on compliance, and advising on further documentation or regulatory amendments to allow the U.S. company to continue in business under foreign ownership.
Our team has been involved in many complex foreign acquisitions and have successfully navigated transactions through the CFIUS process. Our relationships with officials involved in the CFIUS process provide us with a unique understanding of this complex review.
