2010 CFIUS Annual Report CY09.doc - Department of the Treasury

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A. Information on 2009 Covered Transactions The classified version of this report contains a table listing all 65 notices of transactions that were filed with CFIUS in 2009, and that CFIUS determined to be covered transactions under section 721. That table sets forth information on the acquirer and the U.S. business acquired, including the nature of their business activities or products, and details on any withdrawal. While that table is not included here because of the disclosure prohibition in section 721, provided below is aggregate information regarding those 65 notices: • CFIUS conducted both a review and an investigation with respect to 25 of the 65 notices. • Seven of the notices were withdrawn. In three of these cases, the parties filed a new notice. In three other cases, the parties abandoned their transaction. In one case, the party withdrew its notice with the intention of re-filing in 2010. • The President did not take action to block or prohibit any transactions in 2009. B. Specific, Cumulative, and Trend Data on Covered Transactions, Withdrawals, and Investigations In the years 2007 through 2009, companies filed 358 notices of transactions that CFIUS determined to be covered transactions under section 721. Roughly nine percent (33 cases) of such notices were withdrawn during the review stage, three percent (12 cases) were withdrawn during the investigation stage, and 15 percent (54 cases) resulted in an investigation. There were no transactions that resulted in a Presidential decision. There was a modest upward trend in the number of notices from 2007 to 2008, followed by a noted decline in 2009. As shown in Table B-1 on the next page, the number of notices of covered transactions increased from 138 in 2007 to 155 in 2008. By 2009, the number of notices had dropped to 65. The percentage of notices that were withdrawn from review fell in 2009 compared to 2008, but represented a slight increase when compared to 2007. The percentage of investigations shows an overall increasing trend from 2007-2009, while the percentage of notices withdrawn during the investigation stage declined slightly. In 2007, seven percent (10 cases) were withdrawn during review, four percent (five cases) were withdrawn during investigation, and four percent (six cases) resulted in investigation. In 2008, 12 percent (18 cases) were withdrawn during review, three percent (five cases) were withdrawn during investigation, and 15 percent (23 cases) resulted in investigation. In 2009, eight percent (five cases) were withdrawn during review, three percent (two cases) were withdrawn during investigation, and 39 percent (25 cases) resulted in investigation. 2
Covered Transactions, Withdrawals, and Presidential Decisions 2007 - 2009 Year Number of Notices Notices Withdrawn During Review Number of Investigations Notices Withdrawn During Investigation Presidential Decisions 2007 138 10 6 5 0 2008 155 18 23 5 0 2009 65 5 25 2 0 Total 358 33 54 12 0 Table B-1: Covered Transactions, Withdrawals, and Presidential Decisions 2007-2009 C. Covered Transactions by Business Sector & Country 1. Covered Transactions by Business Sector of U.S. Companies: 2007-2009 The notices of covered transactions filed with CFIUS during the 2007-2009 period involved several industrial sectors and a wide range of subsectors. Almost half of such notices were in the manufacturing sector (153, or 43 percent), while just over one third of the notices were in the information sector (122, or 34 percent). The tables and charts below provide a breakdown by sector and by year of the 358 notices of covered transactions cumulatively filed with CFIUS for 2007 through 2009. The data below show that the greatest number of filings occurred in the manufacturing and information sectors, although there was no clear trend in the number of notices filed within each of these sectors as a percentage of total notices filed each year. The percent of notices in the manufacturing sector increased slightly from 2007-2008, then declined in 2009. Notices in the information sector declined notably as a percentage of annual transactions in 2008 and then increased in 2009. Transactions as a percentage of yearly totals in the mining, utilities, and construction sectors have shown a steady upward trend since 2007. Covered Transaction by Sector and Year, 2007-2009 Year Manufacturing Information Mining, Utilities and Construction Wholesale and Retail Trade Total 2007 60 (43%) 58 (42%) 11 (8%) 9 (7%) 138 2008 72 (46%) 42 (27%) 25 (16%) 16 (10%) 155 2009 21 (32%) 22 (34%) 19 (29%) 3 (5%) 65 Total 153 (43%) 122 (34%) 55 (15%) 28 (8%) 358 Table C-1: Covered Transactions by Sector and Year, 2007-2009 3
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2010 CFIUS Annual Report CY09.doc - Department of the Treasury

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