1-Hour Program

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Overview

The first few months of 2016 have shown China to be on an extraordinary buying spree, risking a political backlash not seen since the 1980s, when Japanese investment raised concern on Capitol Hill and elsewhere.  Recently announced deals include the proposed purchase by a Chinese provincial real estate and investment firm of the storied Chicago Stock Exchange, and ChemChina's record-breaking bid for Syngenta.  Some Chinese deals have cratered.  Members of Congress have sounded the alarm.  In the middle of all this activity, the CFIUS annual report covering transactions reviewed in 2014 is out, showing that the Committee on Foreign Investment in the United States (CFIUS) reviewed more Chinese transactions than transactions from any other single country --  for a third year in a row.    

Nevertheless, although Chinese acquisitions get the headlines, over 80% of the CFIUS reviews in 2014 did NOT involve Chinese buyers.  This program will discuss the highlights of the annual report with a focus on what we can learn from those other 123 reviews (and something about China, too) and why all foreign acquirers need to care about CFIUS.   

The program will review the following questions, among others:  

  • What are the highlights of the 2014 annual report?
  • What is buried in it?
  • What does the report say about the non-Chinese reviews?
  • What does the influx of Chinese transactions mean for the other reviews?
  • What does the report say about how CFIUS is viewing “national security”? 
  • What is the significance of the large numbers of Chinese reviews?  Does the report and recent news accounts of failed deals truly reflect a tougher stance on the part of CFIUS towards Chinese investment – or something else? 

FACULTY:  Anne W. Salladin and Christopher R. Brewster, both Special Counsel at Stroock & Stroock & Lavan LLP, have extensive experience in CFIUS matters.  As legal counsel at the U.S. Department of the Treasury, chair of CFIUS, Anne reviewed some 500 transactions, including many of the major deals over the past decade.  Chris has represented foreign and domestic clients before CFIUS since the law was first enacted in the 1980's and has written and lectured extensively on the Committee's work.

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