This is a summary of an interview published in the January 2024 edition of Financier Worldwide magazine. 

The EU and the UK are placing greater focus on inbound Foreign Direct Investment (FDI). Factors like China's global commerce influence, digitalization, and geopolitical tensions have spurred governments to tighten regulations around such investments. With national security matters increasingly linked to technology and data, governments are expanding foreign direct investment regimes to protect critical sectors. Also, the EU has adopted a centralized FDI screening mechanism that allows it to influence national decisions. Although the majority of deals are cleared, increased scrutiny can make risk assessment more challenging, leading investors to potentially abandon transactions. The lack of a harmonized system within the EU also presents a significant challenge in determining which transactions require notification. The process also entails negotiating conditions and allowing for extended review periods. National security screening mechanisms are expected to broaden, with governments eager to control outbound investments to ensure strategic assets do not fall into potentially risky foreign hands. Moving forward, foreign investors must ensure comprehensive due diligence and engage FDI specialists early in the process to navigate the complexities of regulatory landscape.

Read the full article, published in Financier Worldwide magazine here. 

If you need further guidance in this area, please contact the authors of this article.

VISIT OUR COMPETITION & EU HOMEPAGE