Annual Reports Show Upward Trend in CFIUS Filings

The recently released annual reports to Congress on reviews conducted by the Committee on Foreign Investment in the U.S. in 2016 and 2017 (see 1911220060) show an “upward trend” in the number of notifications filed with CFIUS, according to a Nov. 26 post by Thompson Hine. In particular, voluntary notifications for filings in the finance, information and services sectors during the 2016-2017 period (see 1911220060) were particularly high, the post said. For the 2015-2017 period, acquisitions involving Chinese investors accounted for the largest number of CFIUS notices -- about 26 percent of all notices, the post said. In addition, the use of “mitigating measures to obtain CFIUS approval is increasing,” the law firm said. Mitigating agreements -- or agreements put in place by CFIUS agencies that “feel that” certain conditions must be met to ensure compliance and to mitigate potential risk to U.S. national security -- were involved in 18 transactions in 2016 and jumped to 29 transactions in 2017, the post said.