### Question
How is the term covered transaction defined?


### Answer
The term **covered transaction** is defined in *50 U.S.C. § 4565* as the following:

> any merger, acquisition, or takeover that is proposed or pending after August 23, 1988, by or with any foreign person which could result in foreign control of any person engaged in interstate commerce in the United States

#### Citation:
  - *50 U.S.C. § 4565*
  - Heading: **CHAPTER 55-DEFENSE PRODUCTION > SUBCHAPTER III-GENERAL PROVISIONS**

