Swiss renewable energy company Viston United Swiss will submit a filing to the Committee on Foreign Investment in the U.S. regarding its planned acquisition of California-based Petroteq Energy, an oil production and technology company, Petroteq said in an April 18 SEC filing. The two companies first submitted a declaration to CFIUS in February, but after the committee said it was “unable” to clear the transaction, the companies “pre-filed” a notice with CFIUS April 6, Petroteq said. The companies hope to submit a formal notice “on an expedited basis” in the hopes of beginning CFIUS' 45-day notice review period "as soon as practicable.”
Mimecast, a U.S. information technology security company, received approval from the Committee on Foreign Investment in the U.S. to be acquired by U.K.-based Magnesium Bidco, Mimecast said in an April 1 filing. The company was told March 31 that CFIUS had “no unresolved national security concerns” with the transaction. The companies had submitted a notification to CFIUS in February (see 2202180020).
The U.S. should redouble efforts to control emerging and foundational technologies, establish a new outbound investment screening regime and create a new multilateral export control forum with close allies, said Emily Kilcrease, an economic statecraft expert with the Center for a New American Security. A new multilateral regime could be challenging to stand up, Kilcrease said, but is “imperative” to prevent proliferation of sensitive technologies to adversaries, including China and Russia.
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Paul Rosen, President Joe Biden's nominee to head the Treasury Department’s foreign investment screening efforts (see 2203090015), said he will continue to prioritize U.S. reviews of China-related transactions and wants to better encourage companies to submit voluntary filings. If confirmed, Rosen also said, he will focus on helping allies bolster their own investment screening regimes.
Companies are increasingly choosing to voluntarily file with the Committee on Foreign Investment in the U.S. to avoid being caught up in CFIUS’s non-notified transaction process, CFIUS lawyers and experts said. That trend, combined with faster CFIUS clearances, could mean an increase in CFIUS filings this year, they said.
President Joe Biden this week nominated Paul Rosen, a white collar lawyer with Crowell & Moring, to lead the Treasury Department's work on the Committee on Foreign Investment in the U.S. as the agency's assistant secretary for investment security. Rosen was previously a federal prosecutor and an official at the Department of Homeland Security, where part of his job included advising the White House on CFIUS matters. He is currently a partner in Crowell's White Collar & Regulatory Enforcement, Privacy & Cybersecurity and Government Contracts groups and co-chair of the firm's National Security practice.
Several companies this month disclosed their filings with the Committee on Foreign Investment in the U.S. or updated the status of their ongoing CFIUS reviews. The American telecommunications company Vonage is awaiting a CFIUS decision before completing its transaction with Swedish telecom company Ericsson, Vonage said in a Securities and Exchange Commission filing. Vonage said it doesn’t expect CFIUS to object to the deal, which should be finalized in the first half of this year.
Ukrainian businessman Max Polyakov said he will sell his stake in Texas-based Firefly Aerospace to satisfy the Committee on Foreign Investment in the U.S.’a national security concerns. CFIUS had asked Polyakov to divest his share over concerns that he could transfer valuable U.S. technology from Firefly to Ukraine or Russia (see 2201030057). Polyakov will sell his stake for $1, he said in a Feb. 16 Facebook post. “Dear CFIUS, Air Force and 23 agencies of USA who betrayed me and judge me in all your actions for past 15 months,” he said. “I hope now you are happy. History will judge all of you guys.” Firefly didn’t respond to a request for comment. A spokesperson for the Treasury Department, which chairs CFIUS, declined to comment.
The U.S. Court of Appeals for the Ninth Circuit affirmed a California district court ruling dismissing a case brought by investors in U.S. semiconductor developer Qualcomm over an alleged scheme by the American company to illegally block Singapore firm Broadcom's bid to take over Qualcomm. Investors had argued Qualcomm had improperly lobbied lawmakers and the Committee on Foreign Investment in the U.S. to block the acquisition.