A US business' close proximity to facilities or areas considered sensitive by the US Government can raise concerns when the Committee on Foreign Investment in the United States (CFIUS) is evaluating the potential national security risks associated with a transaction. Indeed, close proximity concerns have been particularly relevant in CFIUS reviews involving Chinese investments in the United States. When it comes to close proximity, how close is too close? Is there always a concern when the US business is near a US military base? What are the lessons learned from past close proximity cases? This client alert discusses notable observations regarding close proximity concerns in CFIUS reviews, including key issues and red flags parties should be aware of when considering transactions.
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