US Autonomous Trucking Company Enters Into NSA With CFIUS
U.S.-based TuSimple Holdings, which provides self-driving truck and autonomous freight shipping technology, recently entered into a national security agreement with the Committee on Foreign Investment in the U.S. involving a 4-year-old transaction (see 2111230075). The NSA includes restrictions on the company’s data sharing and requires the company to “periodically meet with and report” to CFIUS monitoring agencies, according to a recent SEC filing.
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CFIUS in March 2021 requested that TuSimple file a notice regarding the 2017 purchase of its “redeemable convertible preferred shares” by Sun Dream, an affiliate of Chinese technology company Sina (see 2108160020). CFIUS concluded its review and entered into an NSA with TuSimple Feb. 18, which placed a range of conditions on the purchase and required TuSimple to appoint a security officer and security director and create a government security committee. The company was also required to “adopt a technology control plan.”
The company also said Sun Dream’s current directors won't seek reelection to TuSimple’s board of directors after their current terms expire, and Sun Dream won't “nominate replacement candidates or increase its current shareholdings in the company.”
TuSimple doesn’t “know the exact amount of time and resources that we will need to expend to comply with the NSA,” but it said it has “incurred and expects to incur substantial costs to implement these and other requirements” under the agreement. If it doesn’t comply with the NSA, TuSimple said it could be subject to fines and other penalties that could “materially and adversely impact our ability to operate our business by limiting the scope of future business activities.”