Final Regulations on Review of Foreign Acquisitions by CFIUS Issued by the Treasury Department

December 01, 2008

On November 21, the Treasury Department published its final regulations pursuant to the Foreign Investment and National Security Act of 2007 (FINSA), amending Section 721 of the Defense Production Act of 1950, which authorizes the review of transactions in which a foreign person acquires control of a U.S. business to determine the effects of the transaction on national security, through the Committee on Foreign Investment in the United States (CFIUS). The new final rules, found at 73 Fed. Reg. 70702, provide important guidance as to which transactions are reviewable by the U.S. government and how those reviews will proceed.

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