On April 21, 2008, the U.S. Treasury Department issued long-awaited proposed regulations governing the Committee on Foreign Investment in the United States (CFIUS). These regulations implement the many changes to CFIUS’s review process that were made by the Foreign Investment and National Security Act of 2007 (FINSA). The proposed regulations were published in the Federal Register on April 23, 2008, and any comments must be filed by June 9, 2008. A public hearing is scheduled for May 2, 2008. See Regulations Pertaining to Mergers, Acquisitions, and Takeovers by Foreign Persons, 73 Fed. Reg. 21861 (April 23, 2008).
The proposal completely replaces existing CFIUS regulations and provides far more detail about the types of transactions CFIUS will (and will not) review and much more information about the procedures CFIUS will follow. At first glance, this appears to be more radical than it is in fact because much of the new detail simply codifies for the first time existing CFIUS practice. Overall, however, the proposed regulations should bring more clarity and certainty to the CFIUS process.
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