Foreign Subsidies Regulation

A new regulation to control foreign subsidies could entail more complex, costly, and time-consuming deal clearances.

By Carles Esteva Mosso, Tom D. Evans, Elisabetta Righini, David J. Walker, Gillian Bourke, Natália Solárová, Werner Berg, France-Helene Boret, and Catherine Campbell

European M&A is set to become more complex after the entry into force of the Foreign Subsidies Regulation (FSR), a new regime introduced to control foreign subsidies that distort the EU internal market. This unprecedented new regulatory layer will apply in addition to existing merger control and foreign direct investment scrutiny, and comes at a time of heightened regulatory focus on deals across multiple jurisdictions.

A new regulation to control foreign subsidies could result in more complex, costly, and time-consuming M&A clearance processes.

By Richard Butterwick, Carles Esteva Mosso, Beatrice Lo, Elisabetta Righini, Gillian Bourke, Natália Solárová, Werner Berg, France-Helene Boret, and Catherine Campbell

European M&A is set to become more complex after the European Parliament and European Council agreed the Foreign Subsidies Regulation (FSR), a new regime introduced to control foreign subsidies that distort the EU internal market. This new regulatory layer will apply in addition to existing merger control and foreign direct investment scrutiny of M&A, and comes at a time of heightened regulatory intervention in deals across multiple jurisdictions.