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Foreign Investment: Implementation of Exon-Florio and Related Amendments

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Report Type Reports and Testimonies
Report Date Dec. 21, 1995
Report No. NSIAD-96-12
Subject
Summary:

In 1988, Congress enacted the Exon-Florio legislation authorizing the President to suspend or prohibit foreign acquisitions, mergers, or takeovers of U.S. companies when there is credible evidence that a foreign controlling interest might threaten national security and when other legislation cannot provide adequate protection. The President delegated authority to review foreign investment transactions to an interagency group--the Committee on Foreign Investment in the United States. This report examines (1) the characteristics of foreign investments and the extent to which these investments are reported to the Committee and (2) the factors that the Committee considers in deciding whether foreign investment would results in foreign companies' control of U.S. companies, whether the acquiring company is controlled by a foreign government, and whether there are associated national security risks. GAO analyzed these issues for a sample of 16 cases that the Committee reviewed in 1992 and 1993.

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