As of July 12, 2023, the Foreign Subsidies Regulation ("FSR"), which has been eagerly awaited by M&A practitioners in particular, will largely take effect.
The presentation linked summarizes the key provisions.
In essence:
- Under the FSR, M&A transactions may be subject to a notification requirement if the companies involved have received financial contributions from third countries totaling EUR 50 million (i.e., for example, for the acquirer and target company together) in the three years prior to the acquisition. Clearance by the Commission constitutes a statutory closing condition.
- Public procurement procedures with an estimated contract value of EUR 250 million or more must be notified before the contract is awarded if the bidder has received financial contributions of at least EUR 4 million per third country in the three years preceding the notification.
- The notification obligation applies from October 12, 2023 for the companies involved in transactions as well as bidders in procurement procedures that have received financial contributions from third countries above the threshold value.
- The Commission may already examine financial contributions from third countries ex officio as of July 12, 2023.
See our overview here
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
