Ireland: Inward/ Foreign Investment

The European Union has introduced sweeping reforms to foreign direct investment screening that will fundamentally reshape how Member States, including Ireland, review cross-border transactions for security and public order concerns. These changes establish a harmonised baseline for mandatory notifications, introduce coordinated timelines for multi-country deals, and create enhanced information-sharing mechanisms across all 27 Member States. Ireland's recently implemented FDI screening regime will need to ad

Ireland's foreign direct investment screening regime has completed its first full year of operation, generating significant activity across critical sectors. The 2026 Guidance introduces important procedural changes, including a shift to control-based notification triggers, while the EU's newly adopted Revised FDI Screening Regulation and proposed Industrial Accelerator Act will introduce additional layers of regulatory scrutiny for cross-border transactions.

Competition and Regulation partners at Matheson have authored the Ireland chapter of the Concurrences Foreign Direct Investment Guide, a comprehensive resource covering thirty jurisdictions that addresses the practical questions arising in M&A transactions where FDI review has become a transaction-critical issue. The guide examines how FDI review affects signing timelines, conditions precedent, risk allocation, and deal completion requirements.

Following the enactment of the Screening of Third Country Transactions Act 2023 (the Act) on 31 October 2023, which commenced operation on 6 January 2025...

The new Irish FDI screening regime established under the Screening of Third Country Transactions Act 2023 (the "Act") came into force on 6 January 2025.

What is the current business climate in your jurisdiction including major political, economic and/or legal activities on the horizon in your country that could have a big impact on businesses?

The Screening of Third Country Transactions Act 2023 (the "Act") which was signed into law on 31 October 2023 is expected to commence in the latter part of Q4 of 2024.

In the UK case of Providence Building Services Ltd v Hexagon Housing Association Ltd [2024] EWCA Civ 962, a JCT contract clause gave the contractor an immediate right to terminate if the employer repeated a specified default.

The forecast for M&A in Ireland during the second half of 2024 and beyond is somewhat unsettled. There are certainly reasons for positivity – but also several potential headwinds remaining.