Do Mergers and Acquisitions regulators in the United States discriminate against foreign acquirers, and under what circumstances?

In the context of Mergers and Acquisitions in the United States, regulators do have specific concerns regarding foreign acquirers, particularly with respect to national security. The primary body that evaluates foreign investments is the Committee on Foreign Investment in the United States (CFIUS). This committee is tasked with examining whether a foreign acquisition could pose a threat to national security.

When a foreign entity attempts to acquire a U.S. company, especially in sectors that are sensitive to national security—such as technology, defense, and critical infrastructure—there is a heightened scrutiny compared to domestic transactions. This is to ensure that foreign ownership does not compromise national interests or critical capabilities.

The national security concerns arise from the potential risks of espionage, loss of control over sensitive technologies, and other threats that could impact the safety and economic stability of the country. Therefore, if an acquisition is deemed to undermine U.S. national security, the regulators may impose restrictions or even block the deal altogether.

While other factors, such as financial stability or market concerns, might come into play in various regulatory reviews, the direct discrimination against foreign acquirers primarily hinges on the justification of national security vulnerabilities. This distinguishes the treatment of foreign buyers compared to domestic entities, thereby validating the selection