Most businesses know about the United States Department of Justice’s Antitrust Division, which scrutinizes and has the power to block mergers that it deems anti-competitive.  An entirely separate entity from the U.S. Department of Justice is the Committee on Foreign Investment in the United States (CFIUS).  CFIUS is an intergovernmental agency that assists the President in overseeing the national security aspects of foreign direct investment in the U.S. economy.  Presidents Obama and Trump have both used the statute under which CFIUS exists to block the acquisition of United States companies by Chinese investment firms.  In the past, firms backed by foreign countries acquired U.S. companies by way of merger or other purchase.  As the CFIUS committee has scrutinized foreign investments more often, foreign countries have begun to invest in U.S. companies through temporary joint ventures in an attempt to avoid CFIUS review.  Recent bipartisan legislation introduced in Congress would expand the ability of CFIUS to review foreign investments, including joint ventures.  So, if you are considering engaging in business with a firm backed by a foreign government, be prepared to deal with CFIUS.

If you have any questions about this or any other M&A issue,
please contact Glenn Solomon at gsolomon@offitkurman.com or 443-738-1522.

ABOUT GLENN D. SOLOMON

gsolomon@offitkurman.com | 443-738-1522

Glenn D. Solomon is a principal at Offit Kurman and has provided counsel to businesses and business owners for more than twenty-five years. He has extensive experience in the purchase and sale of businesses, structuring ownership agreements, and advising companies in financial distress.

ABOUT OFFIT KURMAN

Offit Kurman is one of the fastest-growing, full-service law firms in the Mid-Atlantic region. With over 130 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well positioned to meet the needs of dynamic businesses and the people who own and operate them. Our ten offices serve individual and corporate clients in the Maryland, Delaware, New Jersey, and Northern Virginia markets, as well as the Washington DC, Baltimore, Philadelphia, and New York City metropolitan areas. At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we consistently maintain our clients’ confidence by remaining focused on furthering their objectives and achieving their goals in an efficient manner. Trust, knowledge, confidence—in a partner, that’s perfect.

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