The far-reaching EU Foreign Subsidies Regulation came into force on 12 January 2023. Intended to address concerns around subsidies from non-EU countries distorting competition within the EU internal market, the FSR will impose a new mandatory filing obligation for M&A deals meeting certain turnover and financial thresholds from mid-October this year, as well as the possibility of ad hoc filings for smaller deals. Deals meeting the thresholds will need to be reviewed and approved by the European Commission before closing. The introduction of the FSR means applicable transactions could trigger parallel foreign subsidy, merger control, and/or foreign investment reviews.
In this briefing, we look more closely at the new review tools at the Commission’s disposal, how they will impact M&A deal strategy and timing in practice, and – crucially – what businesses can do now to be in the best possible position when they bite later this year.