Bass, Berry & Sims attorney Thad McBride provided insight for a Bloomberg Law article on how recently enacted reforms related to the Committee on Foreign Investment in the United States (CFIUS) will spur reviews of more transactions between U.S. companies and foreign investors.

In some cases, the new law will require “mandatory declarations” by U.S. companies to notify CFIUS of transactions in which a foreign government or specific foreign individual has a “substantial interest” in the company. In addition, there are risks even when filing is voluntary.  “If a filing is voluntary and you decide not to file, the main risk is that the government can come in after the fact and force you to unwind the transaction,” Thad explained. “The consequences can be very significant.”

With the new law, CFIUS has the authority to review transactions in which a foreign person, under the direction of his or her government, could gain access to critical U.S. technologies or the personal data of U.S. citizens. “The issue of personal information opens up a whole new category of transactions that CFIUS could be more interested in, especially with U.S. companies involved in the financial and healthcare sectors,” Thad said.

The full article, “Foreign Deals Reviewed by U.S. Panel to Spike With New Law,” was published by Bloomberg Law – Big Law Business on August 13, 2018, and is available online (subscription required).

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Photo of Thad McBride Thad McBride

Thad McBride advises public and private companies on the legal considerations essential to successful business operations in a global marketplace. He focuses his practice on counseling clients on compliance with U.S. export regulations (ITAR and EAR), economic sanctions and embargoes, import controls (CBP)…

Thad McBride advises public and private companies on the legal considerations essential to successful business operations in a global marketplace. He focuses his practice on counseling clients on compliance with U.S. export regulations (ITAR and EAR), economic sanctions and embargoes, import controls (CBP), and the Foreign Corrupt Practices Act (FCPA). He also advises clients on anti-boycott controls, and assists companies with matters involving the Committee on Foreign Investment in the United States (CFIUS). Thad supports international companies across a range of industries, including aviation, automotive, defense, energy, financial services, manufacturing, medical devices, oilfield services, professional services, research and development, retail, and technology. Beyond advising on day-to-day compliance matters, Thad regularly assists clients in investigations and enforcement actions brought by government agencies, including the U.S. Department of Justice (DOJ), the U.S. Treasury Department Office of Foreign Assets Control (OFAC), the U.S. State Department Directorate of Defense Trade Controls (DDTC), Customs and Border Protection (CBP), the U.S. Commerce Department Bureau of Industry & Security (BIS), and the Securities & Exchange Commission.