Cfius, Powerful and Unseen, Is a Gatekeeper on Major Deals
- 6 years ago
Cfius, Powerful and Unseen, Is a Gatekeeper on Major Deals
The Committee on Foreign Investment in the United States, or Cfius (pronounced Sif-e-us), investigates mergers
that could result in control of an American business by a foreign individual or company, judging whether the deal could jeopardize the national security of the United States.
CANYON BRIDGE CAPITAL — LATTICE Canyon Bridge Capital, a private equity firm, wanted to acquire Lattice, a chip maker based in Portland, Ore. Canyon Bridge received investment from a group
that included China Venture Capital Fund Corporation, which is owned by government-backed organizations.
GO SCALE — PHILIPS In 2015, the Dutch electronics giant Philips had an agreement to sell a controlling stake in its automotive
and LED business for as much as $2.9 billion to GO Scale, an investment fund sponsored by GSR Ventures of China and Oak Investment Partners.
Among the notable recent reviews were:
MONEYGRAM — ANT FINANCIAL Ant Financial, a Chinese electronic payments company, wanted
to purchase MoneyGram, a money transfer company based in Dallas, for $1.2 billion.
But its responsibilities expanded after a crisis in the 1980s involving — like Qualcomm — an American chip maker: Fairchild
Semiconductor, one of the pioneers of Silicon Valley, wanted to sell itself to Fujitsu, a Japanese company.
But the threat of more Japanese investment led Congress to pass the Exon-Florio Amendment in 1988, granting the president the ability to stop a foreign acquisition if there is “credible evidence”
that a “foreign interest exercising control might take action that threatens to impair the national security.”
Cfius was charged with reviewing mergers for potential threats.
The Committee on Foreign Investment in the United States, or Cfius (pronounced Sif-e-us), investigates mergers
that could result in control of an American business by a foreign individual or company, judging whether the deal could jeopardize the national security of the United States.
CANYON BRIDGE CAPITAL — LATTICE Canyon Bridge Capital, a private equity firm, wanted to acquire Lattice, a chip maker based in Portland, Ore. Canyon Bridge received investment from a group
that included China Venture Capital Fund Corporation, which is owned by government-backed organizations.
GO SCALE — PHILIPS In 2015, the Dutch electronics giant Philips had an agreement to sell a controlling stake in its automotive
and LED business for as much as $2.9 billion to GO Scale, an investment fund sponsored by GSR Ventures of China and Oak Investment Partners.
Among the notable recent reviews were:
MONEYGRAM — ANT FINANCIAL Ant Financial, a Chinese electronic payments company, wanted
to purchase MoneyGram, a money transfer company based in Dallas, for $1.2 billion.
But its responsibilities expanded after a crisis in the 1980s involving — like Qualcomm — an American chip maker: Fairchild
Semiconductor, one of the pioneers of Silicon Valley, wanted to sell itself to Fujitsu, a Japanese company.
But the threat of more Japanese investment led Congress to pass the Exon-Florio Amendment in 1988, granting the president the ability to stop a foreign acquisition if there is “credible evidence”
that a “foreign interest exercising control might take action that threatens to impair the national security.”
Cfius was charged with reviewing mergers for potential threats.