Clifford Chance

European Commission proposes broader FDI screening requirements for M&A

25 January 2024

The European Commission has published draft EU legislation that would require all EU member states to impose mandatory filing requirements for investments by foreign (i.e., non-EU) investors in certain sectors. It would also strengthen and, for many deals, lengthen the "cooperation mechanism" that requires clearance to be delayed until other member states and the Commission have had the opportunity to comment on screened transactions, while substantially reducing the number of deals that would be subject to the mechanism.

Separately, the decision as to whether to introduce screening of outbound investments by EU businesses into other jurisdictions has been delayed to 2025.

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