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Sunny Mann

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Mandatory, CFIUS-style screening system in place for transactions in 17 industry sectors On 11 November 2020, the UK Government introduced the long-anticipated National Security & Investment Bill before Parliament. The new law will significantly expand the Government’s existing powers to review the national security implications of transactions and has been timed to coincide with the end of the Brexit Transition Period. The reforms follow concerns globally about foreign control of national businesses active in sensitive…

Last week, the EU published the results of its public consultation on the White Paper on levelling the playing field as regards foreign subsidies. Out of the 150 responses received from EU member states, EU companies and foreign governments (including China and the US), feedback was generally positive and member states are generally in favour of taking legislative action. Amongst the responses were also warnings that the EU should take great care to avoid any…

On 23 September 2020, the European Commission (“Commission”) ended a public consultation into proposals to create new review mechanisms aimed at countering distortive effects of foreign subsidies in the EU single market. The premise of the proposals is that some companies operating within the EU may be at an unfair competitive advantage, if they are receiving foreign subsidies not available to their EU counterparts due to state aid rules. The new mechanisms would apply to…

Introduction The UK’s current investment review regime is set for a significant overhaul with the publication of the National Security and Investment Bill (“NSIB”), anticipated before the end of this year. Some have argued that the existing UK public interest regime – contained in the Enterprise Act 2002 – is not fit for purpose, and that without legislative reform, the UK would be left exposed at a time of evolving national security threats. The NSIB…

Overview The COVID-19 crisis, and resulting increased global demand for medical equipment and supplies, has shone a light on the fragility of many critical supply chains. This has led to a broad strengthening of foreign investment review (“FIR”) rules, as countries seek to safeguard such critical supply chains against perceived hostile foreign takeovers, resulting in increased regulatory hurdles for companies in strategically important sectors. In-depth National FIR rules allow governments to review and potentially to…

Overview Within the next few months, the UK Government is expected to introduce a new self-standing investment screening regime, representing a fundamental overhaul and major expansion of its existing powers to intervene in transactions on national security grounds. These upcoming changes reflect a broader global trend of sharpened scrutiny towards inbound foreign investment, particularly in light of the COVID-19 situation and political mistrust of foreign State actors. Current regime There is currently no standalone investment…