Shein’s acquisition of Everlane faces US national security review
US authorities are conducting a national security review of Shein Global Holdings’ purchase of American clothing retailer Everlane after Shein sought approval for the deal, people familiar with the matter said, adding to a growing list of regulatory hurdles for the China-founded fast-fashion giant in one of its most important markets. The review by the Committee on Foreign Investment in the US…
The US government is currently conducting a national security review of Shein Global Holdings' acquisition of American clothing retailer Everlane. This review, initiated by the Committee on Foreign Investment in the US (Cfius), began after Shein voluntarily requested the review following the completion of the $80 million transaction in May.
Cfius, led by the Treasury Department, is an inter-agency panel that examines potential national security threats from foreign investments. The review process typically prevents future challenges, but it also holds the power to block, unwind, or impose conditions on transactions deemed threatening to US national security. Shein has stated its commitment to comply with all applicable laws and regulations.
The review is focused on potential national security issues related to Shein's acquisition of a company that handles Americans' personal data, a sensitive issue in the context of the US-China rivalry.
Written by urgent.news from Reuters Business via SCMP's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
