The following summary is an industry segmented example of a CFIUS-reviewed transaction. Please refer to the 5/23/11 post for more information on this survey.

On September 20, 2010 Altair Nanotechnologies Inc. of Reno, Nevada, announced that it had entered into an agreement with Canon Investment Holdings Limited of Zhuhai, China for the sale of 51% of its shares to Canon. Altair is a leading provider of fast response battery systems technology. Its lithium-titanate based battery systems are among the highest performing in the world and are used in mass transit and stationary power. Canon is the holding company of Yintong Energy Company Ltd., an advanced manufacturer of high-capacity and high-power lithium battery products.The investment agreement specified that completion of a national security review and investigation by CFIUS was a condition to the closing of the investment. The proceeds of the investment were slated to be used to fund the contemplated establishment of a lithium-titanate manufacturing facility in China and Altair's working capital requirements and operations in the United States.

CFIUS review began on November 23, 2010 with the filing of a joint voluntary notice. On December 27, CFIUS notified Altair that it intended to commence a national security investigation. On January 28, 2011, CFIUS notified Altair that it had concluded its investigation and identified no unresolved national security concerns with respect to Canon’s proposed investment. The time from filing to clearance was 66 days, shorter than other transactions covered in the survey. The timeline for this review makes it difficult to argue that there is a bias at CFIUS against investment from China. 

The following post will address transactions in the defense industry.