In 2011 AVIC Chinese SOE (State owned entity) that manufacturers fighter aircrafts for Chinese government bought Cirrus, which manufactures aircraft components for US Defense forces. However in 2013, Polaris Financial Technology Ltd. an Indian IT was asked to reverse its acquisition of 85.3 percent stake in IdenTrust. The approvals might look arbitrary but often it is not always so.
This case-study uses a 3 prong approach to demystifying the approvals. Firstly we have consulted five reputed consultants. Secondly we researched precedents and thirdly we reviewed the entire public information document available on the topic.
US are under increasing pressure to protect its technology leadership and acquisitions expose them to the threat of espionage and proliferation of cutting edge technology and products. Acquisitions in Financial sector, Telecom and IT are scrutinized for their potential threat to data privacy and exposure to sensitive databases. Investments in Ports and mining need to be vetted for customs and border security risks.
Organizations prefer to integrate the two companies swiftly in order to maximize the synergy and cross-pollination of best practices and technology. This is often not aligned with US interests to protect and manage its risk. Several structures have been proposed as mitigation measures.
A successful Acquisition is one that manages its stake-holders well. Many acquisitions are shrouded under confidentiality and under-estimate the importance of a well-defined clear communication strategy. There is too much emphasis on the other share-holders that the promoters often tend to ignore the reaction of Public, Senate, various federal and state agencies.

To read more download this old whitepaper that I had written.
CIFUS demystified for Indian IT companies