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George Wang in International Financial Law Review: US Lawsuit Reveals Cfius Review Defects, ChinaCo Fears
The first lawsuit against the US foreign investment regulator reveals a spike in US protectionism, and problems with the national security review of inbound investments.
The plaintiff’s claim reflects the lack of transparency and dialogue that has marked the Committee on Foreign Investment in the US’ (Cfius) review processes over the past 12 months, lawyers told IFLR...
The vast majority of deals that come before Cfius are not blocked, and it’s highly unusual for a deal to be referred to the President.
But of the handful of deals the Committee has rejected, many have involved Chinese buyers, said Haynes and Boone M&A partner George Wang. Huawei’s purchase of 3Leaf assets and Far Eastern Golden’s deal with a Nevada company are recent examples. Cnooc’s proposed acquisition of Nexen assets is also facing Cfius difficulties.
“I think the lesson learnt [from Ralls] is if you have doubts, you probably want to go ahead and make the filing or speak with a member of the Committee – particularly if you are a Chinese company,” Wang said.
Excerpted from International Financial Law Review, September 20, 2012. To view full article, click here.