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Foreign Deals With Data-Heavy U.S. Firms to Face New Scrutiny

Jan. 16, 2020, 5:35 PM

Healthcare, social media and other U.S. companies handling sensitive personal data could have a tougher time securing foreign funding once new Treasury Department regulations kick in next month.

The U.S. government is adding non-controlling foreign investments in certain companies, including those collecting large amounts of personal information, to the types of cross-border transactions reviewed for national security risks.

The regulations, which take effect Feb. 13, add new wrinkles for companies in data-heavy industries, opening up more potential investments to scrutiny by the Committee on Foreign Investment in the United States (CFIUS)—and possibly being rejected.

Tech startups and other U.S. ...