Historically US Presidents have rarely if ever countermanded a CFIUS recommendation and they have 15 days from the date of the recommendation to deliver their judgment.
Lattice announced the deal back in November 2016 but has struggled to move it forward while it has been under scrutiny from CFIUS, which has in recent times been more inclined to block deals.
Lattice said that its view remains that the proposed transaction does not raise any national security concerns that cannot be addressed by the comprehensive mitigation measures that Lattice and Canyon Bridge have proposed to implement. Under the Defense Production Act of 1950, as amended, if CFIUS recommends that a transaction be prohibited or suspended, the President of the United States must render his decision to suspend, prohibit or allow the proposed transaction within 15 calendar days.
Lattice said it is hopeful, the President will decide to allow the proposed merger to go ahead.
The last example of this occurred under the presidency of Barack Obama who, on CFIUS recommendation, prohibited the acquisition of the US business of metalorganic chemical vapor deposition (MOCVD) equipment vendor Aixtron SE (Herzogenrath, Germany) by China-controlled Grand Chip Investment GmbH.
Related links and articles: