Companies doing deals and business in the European Union may soon see more red tape added to the already complex set of European regulations on merger control, EU state aid and foreign investment control. On 30 June 2022, the European Parliament and the Council announced their agreement on a new regulation, which will give the European Commission (EC) far-reaching powers to intervene in, and possibly prohibit, M&A transactions and public tender bids involving companies that have received apparently distortive foreign subsidies from non-EU governments. This article discusses the EU Foreign Subsidies Regulation (FSR) that allows the EC to review transactions affected by foreign subsidies and to remedy any possible distortive effects.
Authors: Paula Riedel, Partner, Antitrust & Competition, Sally Evans, Partner, Antitrust & Competition, Dr. Thomas S. Wilson, Partner, Antitrust & Competition, and Dr. Michael Engel, Partner, Antitrust & Competition, Kirkland & Ellis International LLP
This article was originally published on the website of Kirkland & Ellis International LLP on July 14, 2022.