Prepping for CFIUS: Understanding and Managing Foreign Investments in the U.S.
In late September 2012, the Obama Administration blocked plans by a Chinese company to build wind turbines off the coast of Oregon, citing national security considerations due to the close proximity of a U.S. Navy site near the proposed wind farm. This recent order to cease activity related to the wind facility was the result of a review process by the Committee on Foreign Investment in the United States (CFIUS).
CFIUS is a federal inter-agency committee that is charged with reviewing the national security implications of foreign investments in U.S. companies or operations. With the cross-border nature of many investments in the worldwide energy industry, questions relating to the national security implications of investments in the United States inevitably arise. In the video below, Josh Zive, senior counsel in the Policy Resolution Group at Bracewell & Giuliani, recently sat down with my colleague, PRG partner Paul Nathanson, to provide a concise overview of CFIUS, including explanations of:
- how the CFIUS review process works,
- why companies undertake the time and expense of going through the voluntary filing process,
- why CFIUS disapproves transactions, and
- what foreign investors and U.S. companies should be looking out for in the near future.