The Committee on Foreign Investment in the U.S. has told U.S. Steel that it was unable to reach a consensus on the proposed acquisition of the American steelmaker by Japan’s Nippon Steel, prompting it to refer the matter to President Joe Biden to make a decision, U.S. Steel said in a statement late Dec. 23.
The Treasury Department recently issued guidance about when deals may qualify for a national interest exemption, which could exempt those transactions from being captured under the agency’s upcoming outbound investment prohibitions (see 2410280043). The document outlines the process for requesting an exemption, what information the U.S. requester needs to submit to the agency, the factors the government may consider, and more.
President-elect Donald Trump posted on Truth Social that he will block the purchase of U.S. Steel by Nippon Steel, though it's possible President Joe Biden will take care of that before Trump is inaugurated.
The Treasury Department on Dec. 9 will hold an inaugural conference on its new outbound investment security program, which will place new prohibitions and notification requirements for U.S. outbound investments in China’s semiconductor, artificial intelligence and quantum sectors beginning in January (see 2410280043). Registration for the conference ends Dec. 2. It will be held at the Treasury building in Washington; an agenda hasn't yet been released.
A Treasury Department final rule that’s expected to expand the enforcement and monitoring powers of the Committee on Foreign Investment in the U.S. is scheduled to be officially published in the Federal Register Nov. 26 and take effect Dec. 26. The agency earlier this month issued a prepublication version of the rule, which will allow CFIUS to impose higher maximum penalties, collect a broader range of information from parties involved in non-notified transactions, fine companies and issue subpoenas in a wider set of circumstances, and more (see 2411180048).
The Treasury Department’s lead official for the Committee on the Foreign Investment in the U.S. expects the committee to continue much of its existing efforts under the incoming Trump administration, including by prioritizing enforcement and compliance with mitigation agreements.
Foreign investors are increasingly incorporating the regulatory requirements of the Committee on Foreign Investment in the U.S. into the due diligence they conduct for U.S. transactions, a trade lawyer said in an interview.
The Treasury Department issued a correction last week to fix a wrong date in its recently published final rule that will add 59 military bases to the jurisdiction of the Committee on Foreign Investment in the U.S. on Dec. 9 (see 2411070001). Treasury had written that the final rule was published in the Federal Register on Nov. 8, and it corrected that date to reflect the actual publication date of Nov. 7.
The Treasury Department is scheduled to publish a final rule in the Federal Register Nov. 15 outlining new prohibitions and notification requirements for U.S. outbound investments in China’s semiconductor, artificial intelligence and quantum sectors. The agency released the rule in prepublication form in October (see 2410280043). It takes effect Jan. 2.
The Treasury Department published a final rule in the Federal Register that will add 59 military bases to the jurisdiction of the Committee on Foreign Investment in the U.S., setting the effective date for Dec. 9. The rule, released earlier this month, also will increase the scope of transactions CFIUS can examine for land purchases near eight other military bases, amend the definition for “military installation” and make other changes (see 2411040017 and 2407090003).