CFIUS Approval for Acquisition of DRS Technologies
The firm has obtained approval from the Committee on Foreign Investment in the United States (CFIUS) for Finmeccanica S.p.A. to proceed with its $5.2 billion acquisition of DRS Technologies, Inc. Finmeccanica, which is partially owned by the Italian government, is the main Italian industrial group operating globally in the aerospace, defense, and security sectors, employing more than 60,000 people and generating revenues of more than $18 billion. DRS is a leading US defense contractor serving the US military, major aerospace and defense prime contractors, the intelligence community, international military forces, and industrial markets.
Due to the extremely sensitive nature of DRS’s work, CFIUS clearance hinged upon the Department of Defense’s approving a plan to mitigate Finmeccanica’s foreign ownership, control or influence (FOCI). Our legal team engaged in months of high-level negotiations with the US government and between Finmeccanica and DRS to reach terms that would receive regulatory approvals from CFIUS and the Department of Defense and that were acceptable to the parties. Our attorneys were brought into the negotiations when Finmeccanica realized that in order to complete the acquisition, they would require the unparalleled experience and vast capabilities of the firm, which has the most successful track record in the industry for both CFIUS approval and FOCI mitigation arrangements.