Deals
U.S. Tightens Rules for Foreign Deals’ Security Risk Reviews
- New rules for Cfius reviews go into effect on Feb. 13
- Security reviews to extend to non-controlling investments
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The Trump administration on Monday issued long-awaited rules that will intensify scrutiny of foreign investment in U.S. companies.
The final regulations, which will go into effect on Feb. 13, put teeth in a 2018 law that expanded the authority of the Committee on Foreign Investment in the United States, or Cfius, to examine national security risks posed by foreign deals. More cross-border transactions will now be subject to reviews by the inter-agency panel, exposing a greater number of deals to the risk of rejection by the U.S. government.