Bayh Offers Amendment to Ensure Review of Energy-Related Foreign Takeovers

Bayh Offers Amendment to Ensure Review of Energy-Related Foreign Takeovers

Senator calls for mandatory reviews of energy-related takeovers to examine energy, defense concerns

Washington, DC - U.S. Senator Evan Bayh today introduced an amendment to the Defense Authorization bill that would make all energy-related foreign takeovers of American companies worth more than $1 billion subject to an automatic review. Under current law, companies are not obligated to report takeovers for review, regardless of potential concerns over energy needs or national security implications.

"We need to make sure that any foreign purchase of a U.S. company does not threaten our national security or limit much-needed natural resources," Senator Bayh said. "Any takeover worth more than a billion dollars should warrant a serious review to ensure that American interests are not harmed by the sale."

Bayh's amendment is designed to increase transparency in an often secretive process by requiring companies to report significant energy takeover offers and by requiring the Administration to share news of all offers with Congress. Bayh's amendment would also expand the scope of the review board responsible for approving such sales, by requiring them to consider the nature of the nation's relationship with the United States and any significant surge in that nation's military spending in addition to other concerns. Finally, Bayh's amendment would add the National Intelligence Director to the review board to strengthen representation responsible for raising national security concerns.

Last week, Bayh urged members of the Energy and Natural Resources Committee to support legislation requiring a separate review of foreign takeovers by the Departments of Defense, Homeland Security and Energy before officials decide to approve or reject a transaction. A long-time supporter of fair trade, Bayh has been outspoken against China's unfair trade practices, including illegal subsidies which give Chinese companies an artificial advantage over American companies. If media reports are accurate that the Chinese government is subsidizing CNOOC's bid, this is just the latest example of China seeking an unfair advantage for its businesses.

Countless Indiana manufacturers have suffered as a result of foreign countries refusing to play by the rules when it comes to trade. To help level the playing field for Hoosier companies, Bayh has introduced legislation to allow the United States to enforce its anti-subsidy laws against China and also has pushed for the creation of a special trade prosecutor to identify trade violators.

http://bayh.senate.gov/~bayh/releases/2005/07/25JULY05PR.htm