SPAC investors and target businesses in other countries can raise national security and regulatory considerations, and in particular, the attention of foreign investment review mechanisms such as the Committee on Foreign Investment in the United States (CFIUS) and similar regimes in other countries, writes risk compliance and monitoring firm K2 Integrity.
“Market participants should ensure appropriate due diligence with respect to potential CFIUS reviews and timing considerations, particularly if the SPAC is investing in sensitive technologies, critical infrastructure, or companies that may handle substantial sensitive personal data, such as healthcare companies or businesses that develop mobile applications.”
An interagency body of the U.S. government, CFIUS reviews foreign investments in or acquisitions of U.S. businesses for national security issues and, if national security issues are identified, can impose mitigation on such investments or acquisitions or, potentially, require that the transactions be unwound or prohibited. Read more.
