Reed Smith Client Alerts

In this alert, we consider the latest developments in foreign investment controls in the EU, the UK, the United States and Australia in light of the COVID-19 pandemic.
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A number of economies have reformed their foreign investment review frameworks over the last few years to allow governments more leeway to block deals or impose conditions on their completion. The trend towards increased scrutiny of foreign investment has been primarily focused on national security concerns – for example, the UK government’s intervention in the proposed deal between Advent International and Cobham plc last year, which we considered in this client alert.

However, many countries have now implemented emergency legislation, using foreign investment controls as a means to protect wider economic and social concerns triggered by COVID-19. Companies interested in acquiring businesses in these sectors should be aware of these new measures.