Source: https://www.law.cornell.edu/cfr/text/16/802.50?qt-cfr_tabs=1
Timestamp: 2015-08-30 18:49:28
Document Index: 164244786

Matched Legal Cases: ['art 802', '§ 802', '§ 801', '§ 802', '§ 801', 'art 802']

16 CFR 802.50 - Acquisitions of foreign assets. | US Law | LII / Legal Information Institute
CFR › Title 16 › Chapter I › Subchapter H › Part 802 › Section 802.50 16 CFR 802.50 - Acquisitions of foreign assets.
§ 802.50
Acquisitions of foreign assets.
The acquisition of assets located outside the United States shall be exempt from the requirements of the act unless the foreign assets the acquiring person would hold as a result of the acquisition generated sales in or into the U.S. exceeding $50 million (as adjusted) during the acquired person's most recent fiscal year.
Where the foreign assets being acquired exceed the threshold in paragraph (a) of this section, the acquisition nevertheless shall be exempt where:
Both acquiring and acquired persons are foreign;
The aggregate sales of the acquiring and acquired persons in or into the United States are less than $110 million (as adjusted) in their respective most recent fiscal years;
The aggregate total assets of the acquiring and acquired persons located in the United States (other than investment assets, voting or nonvoting securities of another person, and assets included pursuant to § 801.40(d)(2) of this chapter) are less than $110 million (as adjusted); and
The transaction does not meet the criteria of Section 7A(a)(2)(A).
Example to § 802.50:
1. Assume that “A” and “B” are both U.S. persons. “A” proposes selling to “B” a manufacturing plant located abroad. Sales in or into the United States attributable to the plant totaled $13 million in the most recent fiscal year. The transaction is exempt under this paragraph (a) of this section.
2. Sixty days after the transaction in example 1, “A” proposes to sell to “B” a second manufacturing plant located abroad; sales in or into the United States attributable to this plant, when combined with the sales into the United States of the first plant, totaled in excess of $50 million (as adjusted) in the most recent fiscal year. Since “B” would be acquiring the second plant within 180 days of the first plant, both plants would be considered assets of “A” held by “B” as a result of the second acquisition (see § 801.13(b)(2) of this chapter). Since the total sales in or into the United States exceed $50 million (as adjusted), the acquisition of the second plant would not be exempt under this paragraph (a) of this section.
Title 16 published on 2015-01-01.No entries appear in the Federal Register after this date, for 16 CFR Part 802.