U.S. Treasury Proposes New Rules for Security Review of Foreign Investment

April 21, 2008

The U.S. Treasury on Monday unveiled proposed new regulations on security reviews of foreign investments in U.S. businesses, saying they aimed to safeguard national security while welcoming foreign investment.

The reviews clarify that transactions in which a foreign entity acquires less than a 10 percent stake in a U.S. business is not automatically exempt from a review by the Committee on Foreign Investment in the United States (CFIUS).

The Treasury will accept public comments on the proposed regulations for 45 days and will hold a public hearing on them on May 2 at the Treasury's Cash Room in Washington.

(Reporting by David Lawder; Editing by James Dalgleish)