Clifford Chance

The Annual Report demonstrates that Belgium is playing an active role in analysing foreign investments: 68 notifications were filed and processed between 1 July 2023 and 30 June 2024 ("Relevant Period").

On 30 September 2024, Belgium's Federal Public Service ("FPS") Economy published an Annual Report analysing foreign investment trends and policy in the first year of the Belgian FDI screening mechanism.

Only clearance decisions

In the Relevant Period, the Interfederal Screening Committee ("ISC") received 68 notifications. The ISC unconditionally approved 53 investments, with 15 cases still pending. The ISC did not impose any corrective measures or block any investments during the Relevant Period.

Relatively smooth process

The average duration between notification and the start of the Phase I verification procedure was six days. However, in 44.1% of cases, the Phase I verification procedure was opened the day of notification or the day after.

The average review period from notification to the end of the Phase I verification procedure was 31 days. In only four cases, the ISC requested additional information during the procedure.

Further, in only five cases (7%), the Phase II screening procedure was opened. Four of these cases are still pending, while one case was closed after 52 days (including notification and Phase I).

Mostly acquisitions of control by US investors

In the Relevant Period, 43.4% of notified investment were made by investors ultimately coming from the United States, followed by the UK (29.0%), Switzerland (5.3%), India (4.0%), and Canada, China, Singapore, and Turkey (each 2.6%).

Most notifications concerned complete acquisitions and/or acquisitions of control. Internal restructurings were notified to the ISC 11 times, representing 16.2% of total investments. 81.1% of those restructurings did not result in a new ultimate beneficiary.

Targets from various sectors

The top five most impacted sectors were data (15.1%), health (15.1%), digital infrastructure (11.6%), transport (10.5%), and electronic communication (8.1%).

Outlook for the second year

In light of the forecasted growth of the Belgian economy by 1.2% in 2024 and 2025, the FPS Economy expects to see a slight increase in the number of notifications.

The FPS Economy intends to make the Belgian FDI screening mechanism more user-friendly, smooth, and transparent, among others, by improving the notification forms and the digital platform used for submitting notifications.

Once the new EU regulation on the screening of foreign investments is finalised, the Belgian FDI legislation will also be reviewed to identify any aspects of the Belgian FDI screening mechanism that need to be adapted to the new European framework.