Committee On Foreign Investment in The U.S.: 2012 Annual Report

The 2012 CFIUS Annual Report is out (yes, the annual report for a preceding year appears in December of the following year).  I’m writing a paper that discusses the annual report in more detail, but for now here are three brief highlights:

  • 2012 saw a slight uptick in the number of covered transactions, an uptick in the number of investigations, and a large jump in the number of withdrawn deals:

cfius2012a

 

  • Deals from China are increasing:

Acquisitions by investors from the United Kingdom (“UK”) accounted for 21 percent of the notices, the largest by far, for the three-year period (68 notices, including one notice from an acquirer with UK and German owners), down from 26 percent of all notices for the 2009-2011 period. UK investors also represented the largest number of notices on a single-year basis in 2010 and 2011. Investors from Canada and France accounted for an additional 10 and nine percent respectively over the period (31 and 28 notices), similar to their percentage shares in the 2009-2011 period. Investors from China accounted for 12 percent of the notices for the period (39 notices), up from seven percent for 2009-2011. Chinese investors accounted for the largest number of notices on a single year basis in 2012. Investors from Japan and Israel accounted for seven and five percent respectively over the three-year period (23 and 17 notices).

  • Is there a coordinated strategy by foreign investors or foreign governments to acquire critical U.S. technologies?  Compare 2011 with 2012:
    • 2011: “Based on its assessment of transactions identified by CFIUS for purposes of this report, the U.S. Intelligence Community (“USIC”) judges with moderate confidence that there is likely a coordinated strategy among one or more foreign governments or companies to acquire U.S. companies involved in research, development, or production of critical technologies for which the United States is a leading producer.”
    • 2012: “Based on its assessment of 2012 activity, the U.S. Intelligence Community (USIC) judges it unlikely that there is a coordinated strategy among one or more foreign governments or companies to acquire United States companies involved in research, development, or production of critical technologies for which the United States is a leading producer.”

 

 

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