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Foreign Investment: Committee on Foreign Investment in the United States (CFIUS)
SJKP LLP provides comprehensive legal counsel to both foreign and domestic clients engaged in cross-border investments, mergers, and acquisitions involving U.S. businesses. As global investment flows become increasingly scrutinized, the Committee on Foreign Investment in the United States (CFIUS) plays a central role in determining whether such transactions raise national security concerns.
Our team is uniquely positioned to navigate the complexities of U.S. regulatory frameworks, offering strategic counsel that helps clients secure the necessary approvals from national security authorities. From early-stage deal planning to post-closing compliance, we provide end-to-end legal support to ensure that our clients meet regulatory requirements while achieving their strategic business objectives.
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1. CFIUS & US National Security Process and Risk Navigation
Navigating the CFIUS process can be challenging. Transactions involving sensitive U.S. business sectors often face rigorous national security reviews, and delays or rejection can undermine deal value. At SJKP LLP, we prepare clients to manage risks from the earliest stages of the deal-making process.
Managing Risk and Structuring Deals for Compliance
Effective structuring of cross-border transactions is critical to avoiding regulatory obstacles. Our approach integrates in-depth knowledge of CFIUS procedures, enabling us to design tailored compliance plans.
Developing Mitigation Strategies
Certain transactions inevitably raise national security issues. In such cases, SJKP LLP crafts mitigation strategies that satisfy regulatory concerns while preserving deal value.
2. CFIUS & US National Security Agencies in Cross-Border Transactions
A successful CFIUS filing requires engagement with multiple government agencies. Our team’s in-depth understanding of these bodies’ priorities enables us to provide precise and effective guidance.
- - CFIUS: Oversees reviews of foreign investments for potential threats to U.S. national security.
- Team Telecom: Evaluates foreign participation in U.S. telecommunications.
- DCSA: Ensures security clearances are preserved for defense contractors.
- Department of Energy: Reviews transactions affecting critical energy infrastructure.
CFIUS and the Role of Foreign Influence Assessment
CFIUS plays a pivotal role in assessing foreign influence over US businesses. Our expertise helps clients navigate the often complex process of determining foreign ownership, control, or influence (FOCI), ensuring compliance with regulations to avoid potential delays in transaction approval.
The Role of Team Telecom and National Security
For transactions involving telecommunications companies, Team Telecom’s role is to evaluate the security risks associated with foreign ownership. We assist clients in working directly with Team Telecom to negotiate terms that ensure national security concerns are addressed.
3. CFIUS & US National Security Mitigation and Compliance Strategies for Foreign Acquisitions
Foreign acquisitions often present unique challenges under US national security regulations, particularly with export control requirements and CFIUS reviews. Our team is adept at assessing potential risks and offering practical solutions to mitigate them. We also advise on post-transaction compliance, ensuring that clients continue to meet national security obligations well after the deal is complete.
Our services include:
- FOCI Mitigation: We negotiate arrangements to address foreign control concerns, working directly with DCSA and other agencies.
- Security Agreements: For telecommunications companies, we facilitate entry into necessary security agreements with Team Telecom.
- Export Control Compliance: We ensure that clients comply with export control regulations that may arise from foreign acquisitions, particularly in sensitive industries.
Ongoing Post-Transaction Compliance
Even after the transaction is complete, our job is not done. We provide continued guidance to ensure that the company complies with national security regulations and manages any post-transaction obligations. This includes ensuring that necessary security clearances are maintained and addressing any new compliance challenges.
Export Control and Compliance in Sensitive Sectors
Certain transactions may involve sensitive technologies that trigger export control regulations. Our team ensures that foreign acquisitions involving high-tech sectors comply with these complex requirements, minimizing any potential delays or violations of US export laws.
4. CFIUS & US National Security Experience with Regulatory Authorities
SJKP LLP’s deep ties with the agencies that oversee national security transactions set us apart.
5. Why Clients Choose SJKP LLP for CFIUS Counsel
Cross-border investments in the United States are subject to unprecedented scrutiny. At SJKP LLP, we provide:
- - Comprehensive support across the full lifecycle of CFIUS reviews.
- Multidisciplinary insight integrating corporate, regulatory, and litigation expertise.
- Proven results in securing approvals for some of the most complex transactions.
The information provided in this article is for general informational purposes only and does not constitute legal advice. Reading or relying on the contents of this article does not create an attorney-client relationship with our firm. For advice regarding your specific situation, please consult a qualified attorney licensed in your jurisdiction.
