The Informed Board Podcast | Will the EU’s Focus on Foreign Subsidies Make It More Difficult To Acquire European Businesses?
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The European Commission (EC) has issued preliminary clarifications concerning the distortion test under the new Foreign Subsidies Regulation (FSR). These preliminary clarifications come only a year after the FSR came into...more
Shearman & Sterling advises on many of the most significant subsidy matters in the UK and European Union. As part of this work, we have seen the increasing role that subsidy has played in the policy choices made by...more
Newly effective EU rules impose another layer of review for acquisitions in Europe. They empower the European Commission to investigate whether either the acquirer or target has received non-EU government subsidies that...more
On 12 July 2023, the EU’s Foreign Subsidies Regulation (FSR) entered into force. The FSR allows the European Commission (EC) to investigate and remedy subsidies received from non-EU countries that distort the EU internal...more
Last Step Towards a New Regulatory Framework for M&A Transactions Within the European Union - On July 10, 2023, the European Commission (the “Commission”) published its final regulation for implementing the Foreign...more
The EU’s new regime for tackling foreign subsidies will kick in on 12 July 2023. On 10 July 2023, the European Commission (Commission) published the final text of the Implementing Regulation (Final IR) on proceedings...more
The European Union plans to push back against the clean-tech tax breaks provided in the Inflation Reduction Act (IRA) by easing subsidy rules and creating a new source of money to help member states compete with the United...more
With the enactment of the U.S. Inflation Reduction Act (IRA) and the announcement of the European Union (EU) Green Deal Industrial Plan, there is now a full-fledged subsidy war between the United States and the European...more
The European Union’s Foreign Subsidies Regulation (FSR), published on December 23, 2022, entered into force on January 12, 2023. The FSR will apply with most of its provisions six months after its entry into force—i.e., on...more
The foreign subsidies regulation ("FSR") requires prenotification of certain large M&A transactions and public bids involving companies that receive subsidies from governments outside the European Union ("EU")....more
On 28 November 2022, the EU adopted the Foreign Subsidies Regulation, giving the European Commission powers to intervene to tackle foreign subsidies distorting competition in the EU internal market. The FSR, due to apply by...more
A new regulation to control foreign subsidies could entail more complex, costly, and time-consuming deal clearances. European M&A is set to become more complex after the entry into force of the Foreign Subsidies...more
A new regulation to control foreign subsidies could result in more complex, costly, and time-consuming M&A clearance processes. European M&A is set to become more complex after the European Parliament and European Council...more
On July 13, 2022, the European Parliament and the European Council agreed on a new regulation concerning “foreign subsidiaries that distort the European market.” Their agreement is the final stage prior to voting on the...more
The UK Government has been busy adding flesh to the bare bones of the domestic subsidy control regime that has been in place since the start of 2021 following the signing of the EU/UK Trade and Cooperation Agreement (TCA). ...more
The European Commission (EC) has published a proposal (Proposal) for a regulation on foreign subsidies that distort the internal market. The Proposal aims to address the perception that foreign subsidies have created an...more
State aid remained one of the key sticking points in Brexit negotiations right until the announcement of the Trade and Cooperation Agreement ("TCA") on Christmas Eve 2020. One of the key priorities of the European Union...more
Key Takeaways - The European Commission has adopted a White Paper with proposals for sweeping enforcement powers to address potential distortive effects of foreign subsidies in the EU. The White Paper suggests that the...more
The European Commission has published a White Paper proposing to grant the Commission new enforcement powers to address competition distortions caused by companies operating in, or entering into, the European Union’s Internal...more
Summary - The European Commission (EC) has proposed far-reaching new powers to investigate and sanction foreign subsidies that have allegedly distortive effects on the European Union’s (EU) internal market. The proposals...more
- Extension of the existing State aid scheme would enable support for research, testing and production of products to tackle COVID-19. - It would also allow tax payment deferrals and wage subsidies to help avoid layoffs. ...more
The European Commission has now adopted a Framework of temporary State aid rules enabling Member States to adopt measures to support the growing number of businesses suffering because of the COVID-19 outbreak. This is the...more
On August 20, 2018, the U.K. government published further details of its negotiation position with the European Union on state aid post-Brexit. Three days later, it published guidance on state aid in case the U.K. leaves the...more
In its recent judgment in Land Burgenland (Joined Cases C-214/12 P, C-215/12 P and C-223/12 P) the Court of Justice of the European Union has confirmed that State aid granted to an undertaking in the past must not be taken...more