The agreement to end the partial government shutdown means that the operations of the Committee on Foreign Investment in the United States ("CFIUS") have resumed. CFIUS's operations had been halted during the shutdown, as required by the Foreign Investment Risk Review Modernization Act of 2018. As a result, CFIUS has resumed its activities reviewing the national security risks to the United States of foreign investment transactions.

For transactions already undergoing the CFIUS process, the resumption of activities will mean that the "clock" will begin running again on CFIUS's review and investigation periods, which can last up to 45 days each. CFIUS will also begin accepting new transactions for review, which it has not done since December 21.

For transactions that require CFIUS review as a closing condition, the government's reopening removes a potential stumbling block. Nonetheless, investors should be aware that even as CFIUS begins to accept new transactions for review, there are likely to be delays in the CFIUS process due to a backlog that has built up over the past month. For example, we expect a substantial extension in the time CFIUS takes to respond to pre-filings or to accept final filings as complete once submitted. In addition, the current funding agreement only lasts until February 15, so an additional closure of CFIUS is possible very soon.

Visit us at

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2019. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.