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…
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…
In brief On 20 July 2021, the UK Government announced that the National Security and Investment Act will enter into full force on 4 January 2022. To help businesses prepare for commencement of the regime, the Government also published alongside this announcement a series of further guidance notes and materials. The NSI Act creates a new, self-standing UK investment screening regime on national security grounds, comparable to CFIUS in the US. The Act is extremely…
We continue to have significant concerns regarding the inclusion of intragroup transactions within the current scope of the NSIB. We consider that standalone internal restructurings which do not involve a change of control, i.e., which are not connected to a separate third party transaction, should be removed from the ambit of the Bill altogether as they do not raise a national security risk. Having reviewed the transcripts from the Committee stage reading of the Bill,…
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…