ANALYSIS: CFIUS Triggered by HNA Group’s Management Change

Although there has not yet been a change of ownership, the recent change in management of HNA Group Co., the heavily indebted Chinese airline conglomerate and aggressive global M&A acquirer of recent years, should be enough to initiate a national security review of the group’s U.S. holdings.

By the terms of the law, changes of ownership or control can trigger jurisdiction of the Committee on Foreign Investment in the U.S. (CFIUS) with respect to U.S. entities. HNA was put into critical condition by the new coronavirus last month, as concerns about Covid-19 illness crippled air travel. As of Feb. 29, ...