Chinese companies facing tighter US regulatory scrutiny of their overseas deals are being offered a novel solution: insurance policies that pay out if a takeover is blocked on national security grounds.
A wave of Chinese acquisitions in the US — where mainland companies invested a record $45.6bn last year, according to Rhodium Group — and other overseas markets is drawing intensified attention from the Committee on Foreign Investment in the United States, lawyers say.
Last month, for example, China’s Fujian Grand Chip Investment said it had dropped its €670m offer for German chip equipment maker Aixtron after failing to win Cfius approval.