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required, greatly depends on the extent and type of FOCI exercised over a cleared U.S. company.
4.1.4. FOCI Mitigation Measures
A company with an FCL must begin the steps for implementing FOCI mitigation measures as soon as it enters into negotiations for a proposed merger, acquisition, or takeover by a foreign interest.74 Once those negotiations begin, the company should give a notification of the potential transaction to the agency that issued the company’s clearance. That notification should include the following:
1. The type of transaction under negotiation;
2. The identity of the potential foreign interest investor; and 3. A plan to negate the potential security risk of the FOCI.75
The plan must be submitted in the form of a standard DSS Commitment Letter. That letter must include a draft version of one of the five FOCI mitigation plan options listed below and all documentation required under the specified plan. A template of the Commitment Letter and each of the FOCI mitigation plans can be found on DSS’s website.73
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