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Sany scores preliminary victory in US wind farm lawsuit

0 Comment(s)Print E-mail CNTV, July 18, 2014
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Sany has won the case against the U-S government, after its purchase of an American company - was blocked. After the block, Sany decided to 'take on', the Committee on Foreign Investment in the United States.

This Chinese company - SANY is only the second company in history to have an acquisition, blocked by the U.S. President on national security grounds.

While the company couldn't legally challenge the president's decision, it can and did challenge the process that led him to make it. Here's what happened: SANY had bought four windfarms in Oregon, through its American subsidiary, RALLS.

It was located right near an U.S. Naval installation and restricted airspace. That meant that even after the transaction began -- the U.S. government wanted to review its purchase to protect American national security. The Committee on Foreign Investment in the U.S. - or CFIUS - decided that there could be a threat to national security.

U.S. President Barack Obama ordered SANY to divest itself of these companies. SANY sued.

The case made it all the way to the second highest court in the United States - the U.S. Court of Appeals.

It decided that SANY did not get access to enough information about why the government scuttled the deal so it could address its concerns. The court also ruled that the SANY will get another chance to hear and try to address the government's concerns.

So, is this a chance for other companies who are under investigation by the U.S. for their transactions.

If the US decide to appeaL, it will go to the highest court in the land, the US supreme court.

 

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