Foreign Investment 2020 (Part 4): Who’s In, Who’s Out, and Why It Matters

FCPAThis is the fourth in our multipart series of alerts addressing proposed regulations published in the Federal Register on September 24, 2019, for the Committee on Foreign Investment in the United States (CFIUS) to implement the Foreign Investment Risk Review Modernization Act (FIRRMA).

One of the most anticipated changes in FIRRMA is the concept of a “white list” of investors exempted from certain aspects of CFIUS’s foreign investment review jurisdiction. Another prominent feature of FIRRMA is the heightened CFIUS scrutiny on foreign government-owned investors, which left many wondering what this will mean for the viability of future investments in which a foreign government has an interest. The proposed regulations address both of these concepts and provide some initial answers, while raising several new questions for investors and U.S. businesses about which deals will get a green light in 2020, and which will need to hit the brakes.

Read our client alert.