G. Christopher Griner and Farhad Jalinous Quoted on CFIUS One Year After New Regulations Enacted
February 25, 2010
G. Christopher Griner, Chair of the National Security/CFIUS practice group, and Farhad Jalinous, Partner in the National Security/CFIUS practice group, are quoted in the article titled “CFIUS Moves Smoothly Through One-Year Anniversary, Sources Say,” which appeared in the February 25, 2010 issue of dealReporter.
It has been one year since the revised federal regulations went into effect on the process for evaluating acquisitions by foreign companies that involve U.S. national security, and, though some concerns about CFIUS reviews remain, the overall opinion of Mr. Griner and Mr. Jalinous, who have advised numerous companies on CFIUS reviews, is that the reformed process is working well.
It is generally accepted that, if a foreign government is involved with an acquiring company, CFIUS will investigate the deal. Mr. Griner stated that the stigma associated with being subjected to a secondary-phase CFIUS investigation has largely faded.
Especially noted since the revised regulations went in into effect is the thoroughness of the review of the materials provided to CFIUS. “Every document, every component of a transaction is looked at and they are more open about coming back with questions,” said Mr. Jalinous. “The committee wants to understand the structure of the transaction, investors have to disclose more and inform member agencies about their plans,” added Mr. Jalinous.