A decrease last year in filings with the Committee on Foreign Investment in the U.S. is continuing into 2024, Latham & Watkins said in an Aug. 2 client alert.
The Senate Appropriations Committee is concerned that Chinese Communist Party-backed companies may be “exploiting” the U.S. bankruptcy process to obtain American companies’ sensitive and proprietary information, the panel wrote in a new report accompanying its version of the FY 2025 Financial Services and General Government Appropriations Act.
Companies should expect the Treasury Department to aggressively penalize violators of its upcoming outbound investment prohibitions relatively soon after those rules are finalized, lawyers with Kirkland & Ellis said this week. They also said American chip companies and other technology firms are considering inserting new outbound investment-related warranties in their contracts and may start pulling out of existing investment deals that could soon be captured by the new prohibitions.
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U.S. intelligence agencies are warning American emerging technology startups about the risks of accepting certain foreign investments, saying “foreign threat actors” from China and elsewhere are using those investments as a guise to steal sensitive technology.
A July proposal to add nearly 60 military bases to the jurisdiction of the Committee on Foreign Investment in the U.S. (see 2407090003) shows that sensitive real estate issues are “top of mind” for the committee, said Matt Miller, an executive with data discovery firm HaystackID.
The Committee on Foreign Investment in the U.S. saw a spike in enforcement activity in 2023, fining four parties for breaching mitigation agreements and investigating several others for failing to comply with CFIUS mandatory filing requirements, the committee said in an annual report released July 23.
Public comments are due Aug. 19 on a Treasury Department proposed rule that would add 59 military bases across 30 states to the jurisdiction of the Committee on Foreign Investment in the U.S. The rule, which Treasury previewed earlier this month (see 2407090003) but was officially published in the Federal Register July 19, also proposed to increase the scope of transactions CFIUS can examine for land purchases near eight other military bases, amend the definition of “military installation” and make other technical changes to the list of bases.
The Treasury Department is proposing to add 59 military bases across 30 states to the jurisdiction of the Committee on Foreign Investment in the U.S., a move the agency said would “vastly expand the reach” of CFIUS powers over sensitive foreign purchases of U.S. land. Treasury is also proposing to increase the scope of transactions it can examine for land purchases near eight other military bases, amend the definition of “military installation” and make other technical changes to the list of bases.
The Committee on Foreign Investment in the U.S. has approved Japanese computing chip manufacturer Renesas Electronics Corp.'s acquisition of U.S.-based electronics design firm Altium Ltd., the two companies announced July 1. The CFIUS action was the last regulatory authorization needed to complete the $5.9 billion sale, the companies said. The transaction, unveiled in February, is expected to close Aug. 1 after receiving Altium shareholder approval July 12.