Mergers & Antitrust Law News

Foreign Investment Regulations Could Curb Smaller Deals

Sept. 20, 2019, 9:31 AM

Enhanced national security reviews of foreign investments could prompt companies to think twice before entering smaller deals that might trigger cumbersome and potentially lengthy scrutiny.

The Treasury Department’s proposed regulations provided outsiders the first in-depth look at how it plans to implement a 2018 law meant to bolster the Committee on Foreign Investment in the U.S. (CFIUS), an interagency panel. The committee, led by the Treasury secretary, evaluates national security issues raised by foreign transactions involving U.S.-based companies and was granted additional authority by Congress to scrutinize non-controlling investments and to mandate reporting.

Prior to 2018 law, CFIUS was only...

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