Western Digital Loses China Investor Over Security Review

“Western Digital Corp.’s plan to sell a 15 percent stake to a Chinese investor fell apart after the deal came under a U.S. national security review, highlighting the government’s ability to chill agreements that could give Chinese companies access to U.S. technology.

The decision by CFIUS to investigate doesn’t necessarily indicate that the panel, which includes officials from the Defense and State departments, had concerns about the transaction, but did have more questions at least, said Mario Mancuso, a lawyer at Kirkland & Ellis LLP in Washington. CFIUS can impose conditions on deals to protect U.S. security or recommend that the president block a takeover.”

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This article appeared in its entirety in the February 23, 2016 edition of Bloomberg News.