FDI enforcement in Europe continues to increase, with authorities focusing on acquisitions relating to strategic assets and infrastructure. Companies and advisors should take this increased scrutiny into account when drafting corporate documents, and ensure that they have a clear strategy in place to obtain FDI clearances in a timely manner. The two major FDI investigations in Europe in September both concerned share acquisitions of strategic assets. First, in the face of concerns raised by national…
On 13 July 2023, in Case C-106/22, the European Court of Justice (ECJ) delivered its decision in relation to a preliminary reference submitted by the Budapest High Court. In the context of companies that often have a cross-border ownership structure extending outside of the EU, the ECJ concluded that the fact that a parent company registered in a third country has a majority control over an EU-based investor does not mean that the EU FDI…
On 4 July 2023, the Spanish Government approved Royal Decree 571/2023 on Foreign Investments (“Royal Decree”), with immediate effect from 1 September 2023, which introduces amendments to and provides further details on the screening mechanism for certain foreign direct investments (“FDI”) in Spain. The main changes to the screening mechanism are summarised below: Review process The Royal Decree includes the following amendments: Introduction of a new consultation regime: The investor may submit a voluntary consultation…
Samantha Mobley and Farin Harrison • In recent years, the investment policy landscape has become more complex as nations respond to national security threats, state development strategies and geopolitical risks. Covid-19 created a major economic shock worldwide, prompting some countries to take an even more stringent approach, with a focus on protecting the security of supply of inputs.• Many jurisdictions continue to tighten their screening rules or are introducing robust new measures to protect strategically…
The Indonesian government has enacted Presidential Regulation No. 10 of 2021 on Investment Business Lines (“Priority List”) as one of the implementing regulations of the job creation law (“Omnibus Law”). The new investment list replaces the current negative list (under Presidential Regulation No. 76 of 2007 and Presidential Regulation No. 44 of 2016). This priority list states that all business sectors are open for capital investment activities, with some restrictions and conditions for certain aspects.…