U.K.-based biotechnology company F-star Therapeutics and invoX Pharma, a subsidiary of China-based Sino Biopharmaceutical, are working with the Committee on Foreign Investment in the U.S. on a potential mitigation agreement for their proposed combination. In a Feb. 1 SEC filing, the parties said they voluntarily withdrew and “immediately refiled” a voluntary notice on Jan. 30 at the request of CFIUS to give them more time to “negotiate the terms of a mitigation agreement and continue discussions” with the committee.
A bipartisan bill could add the USDA secretary to the Committee on Foreign Investment in the U.S. and block China, Russia, Iran and North Korea from investing in American agricultural companies. The bill is aimed at “preventing foreign adversaries from taking any ownership or control of the United States’ agricultural land and agricultural businesses,” lawmakers said.
The upcoming U.S. outbound investment review tool probably won’t be used to unwind past deals, and will likely only target investments in specific, sensitive technology areas, said Laura Black, a former Treasury Department official. But she said companies still should prepare for a new outbound investment executive order and be ready for other jurisdictions to implement their own outbound investment controls, including in the EU.
Although the Biden administration appears to be leaning toward a narrower outbound investment screening mechanism than previously expected, that doesn’t mean the tool will remain narrow indefinitely, former U.S. national security officials cautioned this week. They also said they expect implementation to be challenging, particularly as the government tries to define specific technologies outbound reviews should capture.
Foreign companies in the critical minerals sector should expect to see increased investment review scrutiny among the U.S. government and its allies, Holland & Knight said in a January client alert. The firm pointed to the Biden administration’s September executive order outlining priorities for the Committee on Foreign Investment in the U.S. (see 2209150053) -- as well as “enhanced” review policies by Australia and Canada -- as signs that critical mineral supply chains are receiving extra government attention.
The Treasury Department plans to meet with “third-party compliance providers” to discuss “current and future” mitigation requirements involving the Committee on Foreign Investment in the U.S., the agency recently posted on its CFIUS landing page. Treasury’s Office of Investment Security said it “will be soliciting” meetings with specific third-party providers. Providers who aren’t solicited but want to discuss mitigation can contact Treasury’s CFIUS Mitigation & Enforcement office at CFIUS@treasury.gov. A Treasury spokesperson didn’t provide more information.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
The recent intervention by the U.S. in a Chinese foreign investment deal further highlights the Biden administration's investment review priorities and the sometimes “complicated” and “time-consuming” nature of those reviews, Vinson & Elkins said in a Dec. 27 client alert.
The U.S. may look to expand the jurisdiction of the Committee on Foreign Investment in the U.S. after CFIUS determined it couldn’t intervene in China-based Fufeng Group's purchase of North Dakota farmland, law firms said this month. Congress could make a push to expand CFIUS next year, some firms suggested, especially after several lawmakers said the real estate transaction should have fallen under the committee's authority.