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  4. If a foreign entity (X) purchases 5 percent of a U.S. company that is already 5 percent owned by foreign entity (Y), does this create a filing requirement?

If a foreign entity (X) purchases 5 percent of a U.S. company that is already 5 percent owned by foreign entity (Y), does this create a filing requirement?

The answer depends on whether the 10 percent threshold, by one foreign entity or associated group, has been crossed. If foreign company X and foreign company Y are part of the same associated group, as defined on the BE-13, then yes, this acquisition should be reported on one of the BE-13 forms. However, if the two foreign companies are not associated, then the basic requirement is not met.

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