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3.6. The Response: Denial or Divestment
After completion of the review and the presidential review, if the President does not permit the transaction, the President may order that a pending transaction is denied or a completed transaction is divested. Divestiture may occur many years after the acquisition is already complete. However, such divestiture is rare. Moreover, companies may choose to voluntarily divest before the President orders the parties to unwind the transaction. For example, in 2011 CFIUS informed Huawei Technologies Co. that it should unwind its recent purchase of certain assets from a California cloud- based company. Huawei waited until after the investigation and until the presidential review, but ultimately divested on its own volition.
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