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White & Case Spring Series 2018: CFIUS and other FDI reviews – Hitting the wall and finding a way through

Foreign direct investments (FDI) reviews in the US are on the rise especially for international technology transactions. This is, to a great extent, due to the surge in outbound investments from China which is pursuing a declared strategy to use FDI to leapfrog technology development. These developments increasingly give rise to national security concerns. CFIUS’ reviews in the United States are at the forefront of this development and have become showstoppers not only for direct investments into the US but also for foreign-to-foreign transactions that mainly affect other G20 countries. We are also experiencing an increasing trend towards stricter FDI reviews in the EU and Germany. The rules of the game have changed and communications in cross-border deals is becoming more challenging and complex.

On 11th April 2018, Brunswick’s Paul Scott was invited to speak at White & Case’s Spring Series in Frankfurt to discuss Brunswick’s experiences with communicating critical deals that faced CFIUS and other foreign investment reviews.

Together with White & Case’s Tobias Heinrich (Frankfurt) and Farhad Jalinous (Washington, D.C.), the round table group of 20 participants enabled a very interesting and high-quality, but also lively and interactive discussion.

How to find a way through: Three key takeaways

  1. Think holistically about all scenarios that could occur and prepare for them.
  2. Map key issues and develop messages that resonate.
  3. Build relationships for interaction early to get a realistic view of what stakeholders think about the transaction.

For further information please contact Paul Scott, Partner in Frankfurt.

Visit the White & Case website for the full presentation.