Jonathan R. Wakely

February 17, 2021

PALO ALTO—Covington advised Standard Cognition, which provides an autonomous checkout solution that can be quickly and easily installed in retailers’ existing stores, on its $150 million Series C funding led by SoftBank Vision Fund 2 with participation from existing investors CRV, EQT Ventures, and TI Platform Management, as well as new investors SK Networks, ...

February 8, 2021

WASHINGTON—Covington is advising Veritas Capital on the acquisition of Cubic by Veritas and Evergreen Coast Capital for $2.8 billion. The transaction is expected to close during the second quarter of 2021. Cubic is a technology-driven provider of integrated solutions that increase situational understanding for transportation, defense C4ISR, and training ...

January 29, 2021, Covington Alert

On January 20, 2021, U.S. presidential power transferred—peacefully—to Joseph R. Biden. Presidential transitions historically have brought near-term uncertainty for parties undertaking mergers and acquisitions in the United States, particularly transactions subject to review by the Committee on Foreign Investment in the United States (CFIUS). It typically takes ...

January 25, 2021

LONDON–Covington’s London corporate team has advised AIM- and Main Market-listed clients on multiple fundraisings and acquisitions over the past few months, marking a strong year in life sciences transactions. These include: Advising Sensyne Health plc, a UK clinical AI company listed on the London AIM market, on its £27.5 million equity fundraising The ...

January 13, 2021

LONDON–Covington advised Sensyne Health plc, a UK clinical artificial intelligence company listed on the London AIM market, on its £27.5 million equity fundraising. The fundraise consisted of a placing with institutional investors, a subscription by directors and senior management, and an open offer to the company's existing shareholders. Covington also advised ...

September 22, 2020, Covington Alert

On September 15, 2020, the Department of the Treasury, as chair of the Committee on Foreign Investment in the United States (“CFIUS”), published in the Federal Register a final rule (the “Final Rule”) amending the requirement to file with CFIUS certain transactions involving U.S. businesses that produce, design, test, manufacture, fabricate, or develop one or ...

August 20, 2020, Covington Alert

The Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”) released its Annual Report to Congress regarding its review of certain transactions involving foreign investment during 2019. The current Annual Report was released just two and a half months after the previous Annual Report, covering 2018, demonstrating the Committee has ...

June 23, 2020, Covington Alert

On June 22, 2020, President Trump issued a proclamation titled “Proclamation Suspending Entry of Aliens Who Present a Risk to the U.S. Labor Market Following the Coronavirus Outbreak” (“June 22 Proclamation”). The June 22 Proclamation blocks the entry of foreign workers entering the United States on certain nonimmigrant visa categories, including H-1B, H-2B, ...

June 9, 2020, Global Policy Watch

It has been publicly reported that discussions are underway within the Trump Administration for a coordinated interagency initiative to remove key industrial supply chain dependencies from overseas, especially China, and redouble efforts to secure such supply chains in the United States. While this initiative proceeds alongside ongoing efforts to secure supply ...

June 9, 2020, Covington Alert

It has been publicly reported that discussions are underway within the Trump Administration for a coordinated interagency initiative to remove key industrial supply chain dependencies from overseas, especially China, and redouble efforts to secure such supply chains in the United States. While this initiative proceeds alongside ongoing efforts to secure supply ...

May 21, 2020, Covington Alert

On May 21, 2020, the Department of the Treasury, as chair of the Committee on Foreign Investment in the United States (“CFIUS”), published in the Federal Register a proposed rule (the “Proposed Rule”) that would amend the requirements to file with CFIUS certain transactions involving U.S. businesses that produce, design, test, manufacture, fabricate, or develop ...

May 19, 2020, Covington Alert

The Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”) released its Annual Report to Congress regarding foreign acquisitions of, and investments in, U.S. businesses reviewed by CFIUS in 2018. The Committee also released a table reflecting data on the total number of formal reviews (not declarations) in 2019.

April 29, 2020, Covington Alert

The day we have all been expecting has finally come — CFIUS filing fees are going into effect on May 1, 2020. As discussed in our earlier alert, on March 4, 2020, the Department of the Treasury (“Treasury”) issued a proposed rule regarding CFIUS filing fees, which were authorized under the Foreign Investment Risk Review Modernization Act of 2018 (“FIRRMA”). ...

April 23, 2020, Covington Alert

On April 22, 2020, President Trump issued a proclamation titled “Proclamation Suspending Entry of Immigrants Who Present Risk to the U.S. Labor Market During the Economic Recovery Following the COVID-19 Outbreak” (the “Proclamation”). The Proclamation prohibits, for 60 days beginning on April 23, 2020, individuals who are currently outside the United States from ...

April 8, 2020, Covington Alert

On Saturday, April 4, 2020, the White House released the long-awaited Executive Order (“EO”) formalizing the “Team Telecom” Process, titled the “Executive Order on Establishing the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector” (“the Committee”). This EO provides, for the first time, formal ...

April 1, 2020, Covington Alert

The scope and scale of recent events is almost inconceivable. All of us —including the Committee on Foreign Investment in the United States (“CFIUS”) — are sailing in uncharted waters. That said, while we may not have all of the answers, we are able to share some insights from the CFIUS front lines regarding how the challenges presented by the COVID-19 pandemic ...

March 9, 2020, Covington Alert

As we reported this past Friday, on March 6, 2020, President Trump issued only the sixth Executive Order (the “Order”) in history formally prohibiting the acquisition of a U.S. business by a foreign person, pursuant to the authorities that allow the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”) to review foreign mergers and ...

March 4, 2020, Covington Alert

Filing fees — one of the long awaited (and dreaded) innovations of the 2018 Foreign Investment Risk Review Modernization Act (FIRRMA) that has transformed the Committee on Foreign Investment in the United States (CFIUS) — have finally arrived. For more than 30 years, transactions could be submitted to CFIUS for review without a fee payable to the federal ...

January 14, 2020, Covington Alert

The institutional transformation of the Committee on Foreign Investment in the United States (“CFIUS” or “the Committee”) that commenced more than two years ago with the introduction in Congress of the Foreign Investment Risk Review Modernization Act (FIRRMA) now is largely complete with the issuance of the highly anticipated final regulations implementing ...

December 9, 2019

The Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”) released its Annual Report to Congress regarding foreign acquisitions of U.S. businesses reviewed by CFIUS in 2016 and 2017, a combined report covering the final year of the Obama administration and the first of the Trump administration. The report also reflects the crucial ...

November 27, 2019, Covington Alert

The Department of Commerce (“the Department”) has issued a proposed rule implementing the May 15, 2019 Executive Order entitled “Securing the Information and Communications Technology and Services Supply Chain,” which we previously analyzed here. Once finalized and effective, the regulations will govern the process and procedures that the Secretary of Commerce ...

April 2020

  For over 30 years, the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”) focused on a narrow subset of M&A transactions and investments. That era is coming to an end.  Covington is monitoring developments:  CFIUS Publishes Final Rule Governing Mandatory Filing Requirements for Critical Technology Businesses, Covington ...

September 27, 2019

Last week the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”) issued its proposed final regulations (“Regulations”) to implement its expanded authorities under the Foreign Investment Risk Review Modernization Act of 2018 (“FIRRMA”). In doing so, CFIUS bifurcated the rulemaking process, proposing one set of regulations to govern ...

September 24, 2019

This briefing discussed proposed CFIUS reform regulations to implement the Foreign Investment Risk Review Modernization Act (FIRRMA).

September 20, 2019

For over 30 years, the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”) focused on a narrow subset of M&A transactions and investments. That era is coming to an end. On Tuesday of this past week, CFIUS issued its anticipated proposed final regulations (“Regulations”) to implement the Foreign Investment Risk Review Modernization ...

September 10, 2019

The U.S. Department of the Treasury is expected to issue soon proposed regulations implementing the Foreign Investment Risk Review Modernization Act (“FIRRMA”), legislation enacted in August 2018 that reformed the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”). FIRRMA transformed CFIUS’s authorities, but many of the most ...

August 28, 2019, Covington Alert

On August 23, 2019, President Donald J. Trump tweeted: "Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing . . . your companies HOME and making your products in the USA."

July 12, 2019

PALO ALTO—Covington advised Argo AI, LLC, a technology platform company that is working with leading automakers to deliver a fully integrated self-driving system, in the deal announced today with Volkswagen AG and Ford Motor Company. Volkswagen will be making a $2.6 billion investment, becoming Argo AI’s second investor and building upon a $1 billion investment ...

May 16, 2019, Covington Alert

We are writing to provide an update on two important developments in U.S. national security-based regulation of trade: (1) a new, potentially expansive Executive Order on information and communications technology supply into the U.S. market, and (2) the Department of Commerce’s action to add Huawei to the Entity List.

May 7, 2019, Covington Alert

We are writing to provide an update on the current trends and operations of the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”). Approximately nine months after the enactment of the Foreign Investment Risk Review Modernization Act of 2018 (“FIRRMA”) and six months into the Critical Technology Pilot Program (“the Pilot ...

March 27, 2019

WASHINGTON—The American Lawyer has recognized Covington among its 2019 “Dealmakers of the Year.” The annual feature highlights “the lawyers behind the most significant work” in deal making, and this marks the second time the firm has received this distinction in the last three years. In March 2018, Covington helped Qualcomm, Inc. secure a U.S. Presidential ...

February 27, 2019

The webinar covered such topics as federal regulations affecting connected and automated vehicles (CAVs), with a focus on NHTSA, the FAA, the FCC, and CFIUS review; where Congress stands on CAV legislation, including the AV START Act, the SELF-DRIVE Act, and infrastructure legislation; state-level legislative, regulatory, and policy developments, with a closer ...

December 5, 2018, Covington Alert

Earlier this year Congress passed and President Trump signed the Foreign Investment Risk Review Modernization Act (“FIRRMA”), transformational legislation reforming the operations of the Committee on Foreign Investment in the United States (“CFIUS”).

October 11, 2018, Covington Alert

Summary On October 10, the U.S. Department of the Treasury, as chair of the Committee on Foreign Investment in the United States (“CFIUS”), issued interim rules (the “Interim Rules”) that update the CFIUS regulations to address certain definitional and procedural aspects of the Foreign Investment Risk Review Modernization Act (“FIRRMA”) and, for the first time, ...

August 13, 2018, Covington Alert

Earlier today, President Donald Trump signed into law the Foreign Investment Risk Review Modernization Act (FIRRMA) as part of the John S. McCain National Defense Authorization Act. As we have previously reported, FIRRMA will transform the jurisdiction, authority, and operation of the Committee on Foreign Investment in the United States (CFIUS). Our previous ...

July 25, 2018, Covington Alert

Summary  For over a year, we have reported to our clients as the U.S. government considered and developed legislation that would fundamentally reform the operations of the Committee on Foreign Investment in the United States (CFIUS). That effort has been driven by concerns about risks arising from evolving foreign investment composition and business ...

June 27, 2018, Covington Alert

We write to report on two important developments regarding the Foreign Investment Risk Review Modernization Act (FIRRMA), a bi-partisan effort to reform the Committee on Foreign Investment in the United States (CFIUS), and the broader policy debate within the U.S. government on regulatory mechanisms to address foreign investment, particularly from China. On June ...

June 13, 2018

WASHINGTON—On June 9, 2018, Genworth Financial, Inc. ("Genworth") announced that the Committee on Foreign Investment in the United States ("CFIUS") had cleared its $2.7 billion acquisition by China Oceanwide. Covington represented Genworth in securing CFIUS approval, which is the largest China-related transaction approved in the Trump Administration. Reuters ...

May 28, 2018, Harvard National Security Journal

May 23, 2018, Covington Alert

Summary We are writing to report the latest developments related to legislative reform of the Committee on Foreign Investment in the United States (“CFIUS”). On Tuesday, May 22, 2018, the Senate Committee on Banking, Housing, and Urban Affairs (“Senate Banking Committee” or “SBC”) held a markup of S. 2098—the Foreign Investment Risk Review Modernization Act ...

May 16, 2018, Covington Alert

We are writing to report on the current status of the Foreign Investment Risk Review Modernization Act (“FIRRMA”), legislation to reform the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”). FIRRMA, a bill introduced by Senator John Cornyn (R-TX) in the Senate and Congressman Robert Pittenger (R-NC) in the House, seeks to ...

May 8, 2018, Covington Alert

It has been publicly reported that the Trump Administration is considering invoking the International Emergency Economic Powers Act (IEEPA) to further regulate—and in certain areas potentially preclude—Chinese direct investment in the United States, beyond the authorities exercised by the Committee on Foreign Investment in the United States (CFIUS). The prospect ...

April 30, 2018, Covington Alert

We are writing to report on the latest Congressional hearing related to reform of the Committee on Foreign Investment in the United States (“CFIUS”). On April 26, 2018, the Digital Commerce and Consumer Protection Subcommittee of the House Committee on Energy and Commerce (the “Subcommittee”) held an open hearing entitled “Perspectives on Reform of the CFIUS ...

April 17, 2018, Covington Alert

We are writing to report on the latest Congressional hearing related to reform of the Committee on Foreign Investment in the United States (“CFIUS”). On April 12, 2018, the Monetary Policy and Trade Subcommittee of the House Committee on Financial Services (the “Subcommittee”) held an open hearing entitled “H.R. 4311, the Foreign Investment Risk Review ...

March 16, 2018, Covington Alert

Summary We are writing to report on the latest Congressional hearings related to reform of the Committee on Foreign Investment in the United States (“CFIUS”) and potential efforts to enhance and reform the U.S. export control regime. Specifically, on March 14, 2018, the House Committee on Foreign Affairs (“House Foreign Affairs Committee” or “HFAC”) held an ...

March 15, 2018

WASHINGTON—Covington secured a U.S. Presidential order compelling Broadcom Limited to “immediately and permanently abandon” its proposed hostile takeover of its client Qualcomm, Inc. The order was based on findings by the Committee on Foreign Investment in the United States (CFIUS) that Broadcom's takeover "threatens to impair the national security of the United ...

March 8, 2018, Covington Alert

On February 15, 2018, House Foreign Affairs Committee Chairman Ed Royce (R-CA) introduced bipartisan legislation—the Export Control Reform Act of 2018 (“ECRA”)⸺to modernize U.S. export control regulation of commercial and dual-use items.

January 26, 2018, Covington Alert

We are writing to report on the latest significant developments in the effort to reform the Committee on Foreign Investment in the United States (“CFIUS”). On January 25, 2018, the Senate Committee on Banking, Housing, and Urban Affairs (“Senate Banking Committee” or “Committee”) held an open hearing entitled “CFIUS Reform: Administration Perspectives on the ...

January 22, 2018, Covington Alert

On January 18, 2018, the Senate Committee on Banking, Housing, and Urban Affairs (“the Committee”) held a hearing to consider the Foreign Investment Risk Review Management Act (FIRRMA), a bill introduced by Senator John Cornyn (R-TX) in the Senate and Congressman Robert Pittenger (R-NC) in the House to reform the Committee on Foreign Investment in the United ...

January 11, 2018, Covington Alert

We are writing to share our report of two Congressional hearings held this week that are relevant to the ongoing legislative discussion concerning potential reform of the Committee on Foreign Investment in the United States (CFIUS).

December 15, 2017, Covington Alert

We write to offer our perspective on two developments relevant to the Committee on Foreign Investment in the United States (“CFIUS”).

November 8, 2017, Covington Alert

Earlier today, Senator John Cornyn (R-TX), the second-highest-ranking Republican in the Senate, introduced a bill to reform the authority and operation of the Committee on Foreign Investment in the United States (“CFIUS”). The bill is co-sponsored by Senator Dianne Feinstein (D-CA) and Senator Richard Burr (R-NC), the Chairman of the Senate Select Committee on ...

November 1, 2017

WASHINGTON—Covington represented CenturyLink in its acquisition of Level 3 Communications in a cash and stock transaction valued at approximately $34 billion. The acquisition closed today. The firm assisted Century Link in obtaining regulatory approvals by the Federal Communications Commission and state public utilities regulators, and in national security ...

September 21, 2017, Covington Alert

The Committee on Foreign Investment in the United States (“CFIUS”) this week released its long-awaited Annual Report to Congress regarding foreign acquisitions of U.S. businesses reviewed by CFIUS in 2015. The report provides important data that yields insights into the types of transactions the Committee reviewed and the Committee’s treatment of those ...

September 14, 2017, Covington Alert

We are writing to provide our perspective on two significant developments involving the Committee on Foreign Investment in the United States (“CFIUS”).

June 23, 2017, Covington Alert

We are writing to provide our perspective on recent developments regarding the Committee on Foreign Investment in the United States (“CFIUS”), including the plans of Senator John Cornyn (R-TX) to introduce significant legislation to reform CFIUS, and the operation of CFIUS in the first six months of the administration of President Donald Trump.

January 11, 2017, Covington Alert

Late last week, a group of technology industry leaders, researchers, and former policymakers comprising the President’s Council on Science and Technology (“PCAST”) issued a report entitled Ensuring Long-Term U.S. Leadership in Semiconductors. The report concludes that China is seeking to reshape the global semiconductor industry in a manner that threatens U.S. ...

December 5, 2016, Covington Alert

Acting on the recommendation of the Committee on Foreign Investment in the United States (“CFIUS”), President Barack Obama issued an Executive Order on Friday, December 2, prohibiting the acquisition of the U.S. business of Aixtron SE (“Aixtron”) by a company ultimately owned by investors in China. This is the first time that a President formally has utilized ...

September 2, 2016, U.S. Chamber of Commerce

October 22, 2015, ABA Section of International Law 2015 Fall Conference

September 17, 2015

SHANGHAI, September 17, 2015—China Law & Practice named Covington "International Firm of the Year - Life Sciences" at its annual awards ceremony. The leading Chinese legal publication also named Hui Xu a "Rising Star" in regulatory and compliance law and recognized the firm for its role in its "Deal of the Year," Lenovo’s acquisition of IBM's server ...

2015, International Lawyer

November 21, 2014, Global Policy Watch

In remarks last night, President Obama announced his long-planned executive actions to reform the U.S. immigration system.  The President will sign the first of such orders today, despite intense opposition from Republicans in Congress, who believe that the President’s actions are outside the law and contrary to Congress’s authority to legislate federal ...

September 17, 2014, Cov Africa

By any measure Ethiopia is experiencing impressive economic growth.  According to IMF data, GDP grew 8.7 percent in 2012, the country’s weakest year since 2009.  In 2010, GDP grew a blistering 12.6 percent, higher than all but a handful of countries worldwide.  Going forward, the IMF estimates Ethiopia’s economy will grow at 8.0 to 8.5...… Continue Reading

August 22, 2014

WASHINGTON, DC, August 22, 2014 — The Committee on Foreign Investment in the United States (CFIUS) has cleared Lenovo Group’s bid to acquire International Business Machines’ x86-based server business in a $2.3 billion acquisition. Covington & Burling represented Lenovo in securing CFIUS approval. David Fagan, Mark Plotkin, Stuart Eizenstat and Jonathan Wakely ...

July 21, 2014, Global Policy Watch

On July 14, the U.S. Court of Appeals for the District of Columbia Circuit decided Ralls Corporation v. Committee on Foreign Investment in the United States — the first ruling by a federal circuit court on a CFIUS case.  Ralls, a U.S. company owned by two Chinese nationals, sued CFIUS in connection with an order by...… Continue Reading

July 18, 2014, Covington E-Alert

June 23, 2014, Cov Africa

Later this summer the first ever African Leader’s Summit will bring heads of state from across the continent to Washington DC to discuss a range of trade and investment matters.  A recent study on the attitudes of multinational corporations toward investment in Africa suggests that the leaders looking to attract investors will receive a warm...… Continue Reading

May 14, 2014, Inside Energy & Environment

Last week the U.S. House of Representatives passed the Electrify Africa Act of 2014, confirming the existence of a broad, bi-partisan consensus in favor of supporting U.S. direct investment in Africa’s energy sector.  The bill, which now heads to the Senate, seeks to establish a “comprehensive United States Government policy to encourage the efforts of...… ...

May 14, 2014, Cov Africa

Last week the U.S. House of Representatives passed the Electrify Africa Act of 2014, confirming the existence of a broad, bi-partisan consensus in favor of supporting U.S. direct investment in Africa’s energy sector.  The bill, which now heads to the Senate, seeks to establish a “comprehensive United States Government policy to encourage the efforts of...… ...

March 26, 2014, Cov Africa

Earlier this year, the Senate passed a resolution endorsing and supporting efforts by the Obama Administration to improve maritime security in the Gulf of Guinea.  The resolution could not be more timely, as pirate attacks off the coast of West Africa have increased in the first first months of 2014, prompting the International Chamber of Commerce’s ...

December 20, 2013, Covington E-Alert

October 25, 2013, Covington Advisory

October 24, 2013

WASHINGTON, DC, October 24, 2013 — The U.S. Chamber of Commerce yesterday released a significant report, co-authored by Covington & Burling, assessing the opportunities for Chinese participation in the U.S. infrastructure sector. The other co-authors were the economic research and advisory firm The Rhodium Group and the strategic advisory firm Sphere Consulting. ...

October 2013, U.S. Chamber of Commerce

July 2013, Global Trade & Customs Journal

2/13/2013

WASHINGTON, DC, February 13, 2013 — The Committee on Foreign Investment in the United States (CFIUS) on Tuesday approved CNOOC Ltd.’s bid to acquire the U.S. assets of Canadian energy company Nexen Inc. It was the final regulatory hurdle in the $15.1 billion acquisition, the largest overseas investment ever by a Chinese company. Covington & Burling represented ...