CFIUS: Evolution Yields To Revolution

BRIEF INTRODUCTION TO CFIUS AND THE CFIUS PROCESS

CFIUS is an interagency committee of the U.S. government that has the authority to review so-called "covered transactions"— i.e., transactions by or with any foreign person that could result in control of a U.S. business by a foreign person. Thus, CFIUS has jurisdiction over the acquisition of a U.S.-based company by a foreign person and the acquisition of a non-U.S.-based company by a foreign person if the non-U.S.-based company has operations in the United States that constitute a U.S. business. Although CFIUS has been in existence since a 1975 Executive Order, CFIUS was formally established in statute more than a decade ago in connection with enactment of the Foreign Investment and National Security Act of 2007 ("FINSA"), which amended section 721 of Defense Production Act of 1950.