Congress Passes CFIUS Reform

On July 11, 2007, Congress passed the Foreign Investment and

National Security Act of 2007 (the “Act”), sending it to the President to sign into law. The Act amends the Exon-Florio Amendment to the Defense Production Act of 1950 (“Exon-Florio”) to revise the procedures applicable to reviews by the Committee on Foreign Investment in the United States (“CFIUS”) of foreign acquisitions of U.S. entities and assets. As described below, the Act’s reforms

of the CFIUS review process include enhanced congressional reporting requirements and the establishment of stricter formal review procedures. The Act is to become effective 90 days after it is signed by the President.