Foreign Direct Investment (FDI) control is an increasing challenge for many organizations involved in national and international deals. This is amplified when deals need FDI, as well as merger control and other regulatory approvals, in more than one country at once because national agencies demand compliance with an array of different regulations.
Getting the deal through requires a coordinated approach requiring proficiency in legislation requirements and agency practice and, more importantly, a deep understanding of the national security and public policy interest, as well as the geopolitical interests involved. Transactions may raise concerns among policy-makers for various reasons that may not always be obvious to the transaction parties, including concerns related to the industry sector or technology of the domestic business or the nationality or business activities of the buyer. The review extends to ultimate beneficial owners, often including minority investors, limited partners and other ownership and economic interests.
It is imperative for dealmakers to consider foreign investment issues upfront, together with any other regulatory approvals, in order to mitigate any potential risks and/or delays. In many jurisdictions, the FDI control process can take significantly longer than the merger control process and may raise deal risks that should be understood, assessed and addressed at an early stage. FDI control can also apply to internal restructurings and minority acquisitions that fall below the thresholds for merger control law.
We have experience in FDI reviews, generally from the inception of the legislation, and handle a high percentage of the cases filed. Leveraging our network of lawyers and public policy advisors around the world, alongside our multilingual legal and technical staff, our global law firm is uniquely positioned to conduct both regulatory and public policy risks analysis, devise risk mitigation strategies and obtain FDI control approvals through our “one-firm firm” approach.
We continue to develop our market-leading experience and knowledge in this rapidly evolving area, in order to remain ahead of the curve.