Executive Order Intensifies Scrutiny of M&A Transactions Involving Foreign Investment in the U.S.
Highlights
President Biden orders CFIUS to consider additional national security factors when evaluating foreign investments in the U.S.
Areas of scrutiny include microelectronics, artificial intelligence, biotechnology and biomanufacturing, quantum computing, advanced clean energy, climate adaptation technologies, mineral resources, and agriculture
This move is expected to boost the transactions reviewed by CFIUS, particularly affecting voluntary filings and non-notified transactions
On Sept. 15, 2022, President Biden issued Executive Order 14083 directing the Committee on Foreign Investment in the United States (CFIUS) to consider additional specified national security factors and build on existing ones when reviewing covered transactions. The Executive Order, the first of its kind, does not change CFIUS processes or legal jurisdiction and should be read in conjunction with the existing national security factors already considered by CFIUS.
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