CFIUS Review of Acquisitions and Investments

by Practical Law Corporate & Securities

A Practice Note discussing the power of the Committee on Foreign Investment in the United States (CFIUS) to review certain acquisitions of and investments in US businesses by foreign persons. This Practice Note addresses the expanded authority of CFIUS under the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), which broadened its jurisdiction beyond covered control transactions to include certain non-controlling covered investments. It details how this expanded scope applies to US businesses involved with critical technologies, critical infrastructure, or the maintenance of sensitive personal data (collectively known as TID US businesses). This resource offers guidance on navigating the filing and review process, including when a mandatory filing is required, the choice between submitting a short-form declaration or a formal written notice, and available exceptions. It also examines the authority of CFIUS to impose mitigation measures, its increased focus on enforcement and penalties, and its ability to initiate reviews of non-notified transactions.