China has become the world leader in cross-border acquisitions, overtaking the U.S. and Canada for the first time on record. Yet when it comes to Chinese outbound M&A, the U.S. Committee on Foreign Investment in the U.S. (CFIUS) can pose a major challenge to those seeking to complete transactions.
Recently, Mergers and Acquisitions partner David Shine spoke with The Deal about the growing wave of Chinese outbound M&A activity and the critical issues dealmakers should keep in mind, including:
- Applicability of CFIUS is not always clear
- CFIUS determinations are not appealable
- CFIUS is currently highly focused on inbound Chinese transactions
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