On December 23, 2022, Regulation (EU) 2022/2560 of December 14, 2022 on overseas subsidies distorting the inner market (FSR) was revealed within the Official Journal of the European Union. The FSR introduces a brand new regulatory hurdle for M&A transactions within the European Union (EU), along with merger management and overseas direct funding screening. The FSR’s impression can’t be overstated because it introduces two necessary pre-closing submitting regimes and it provides the Fee wide-reaching ex officio investigative and intervention powers. Quickly, the Fee may even launch a public session on a draft implementing regulation that ought to additional element and make clear plenty of ideas and necessities of the FSR.
The majority of the FSR will apply as of July 12, 2023. Importantly, the notification necessities for M&A transactions and public procurement procedures will apply as of October 12, 2023.
We spotlight the important thing ideas of the FSR beneath and supply steering to start out making ready for the appliance of the FSR. We consult with our On The Topic article ‘EU Foreign Subsidies Regulation to Impact EU and Cross-Border M&A Antitrust Review Starting in 2023’ of August 2, 2022 for a extra detailed dialogue of the then draft FSR. We additionally consult with our December 8, 2022 webinar on the FSR. Given the significance of the FSR, we’ll proceed to report any future developments.