• Belgium issues first statistics on its FDI regime: vast majority cleared in phase I, a handful in phase II, and one ex officio investigation.
  • EU Commission starts showing its teeth in the enforcement of the Foreign Subsidies Regulation, with the first ex officio investigations.
  • France publishes its 2023 FDI report, with filing numbers and outcomes that are largely consistent with previous years.
  • Germany’s plans to overhaul its FDI regime slow down amid political controversies.
  • Italy authorizes Safran’s acquisition of RTX’s actuator business, reversing its initial veto, in light of Safran’s commitments.
  • Rotterdam court issues first judgment under the new Dutch FDI regime, ruling against the Government.
  • Four years of Spanish FDI screening: an overview.
  • UK Government issues updated guidelines on National Security & Investment Act (NSIA).
  • President Biden issues order requiring Chinese owner to divest cryptocurrency mining facility near U.S. military base.

Continue Reading Cleary Gottlieb FDI Newsletter: April – June 2024

On 21 May 2024, the UK Government published updated guidance on the application of the National Security and Investment Act (NSIA).  This includes:Continue Reading UK Government Publishes Updated Guidance on the Application of the National Security and Investment Act

On April 11, the U.S. Department of the Treasury (“Treasury”), as Chair of the Committee on Foreign Investment in the United States (“CFIUS”), issued a Notice of Proposed Rulemaking (the “Proposed Rule”) that would modify and expand CFIUS’s mitigation and enforcement authority. Continue Reading Treasury Issues Proposed Rule to Enhance CFIUS Mitigation and Enforcement

  • The European Commission proposes a revised EU FDI Screening Regulation
  • EU takes time to ready Outbound Investment Control Toolkit
  • German FDI reviews dropped in 2023, but FDI review activity follows the trends of prior years
  • Italian FDI reviews in 2023 remained consistently high, despite the end of the extraordinary provisions enacted in connection with the Covid-19 outbreak
  • UK: NSIA decisions, Telegraph Media Group public interest review, and new legislation prohibiting foreign state ownership of newspapers
  • In the U.S., updates to the Critical and Emerging Technologies list signal refinement of focus for CFIUS.

Continue Reading Cleary Gottlieb FDI Newsletter: January – March 2024

The U.S. National Science and Technology Council (NSTC)[1] recently published an updated list of critical and emerging technologies (CETs) as part of an ongoing effort to identify advanced technologies that are potentially significant to U.S. national security.  We previously summarized the February 2022 list of CETs from the NSTC here.Continue Reading Updates to the Critical and Emerging Technologies List Signal Refinement of Focus

The German FDI authority, the Federal Ministry for Economic Affairs and Climate Action (“BMWK”), has published the German FDI screening statistics for 2023.[1]Continue Reading Overall number of German FDI screenings slightly dropped in 2023, but review follows the trends of prior years

On February 1, the United States Court of Appeals for the Eleventh Circuit unanimously granted a preliminary injunction in Shen v. Simpson, enjoining enforcement of a Florida law regulating foreign ownership of U.S. land.  That law prohibits citizens of the People’s Republic of China who are not lawful permanent residents of the United States from purchasing certain real property in Florida.  The Eleventh Circuit’s ruling enjoined enforcement of the law against two individual plaintiffs, and the court held that those plaintiffs had shown a “substantial likelihood of success” on their claim that the Florida law was preempted by the Foreign Risk Review Modernization Act of 2018 (“FIRRMA”), the most recent federal statute expanding the authority of the Committee on Foreign Investment in the United States (“CFIUS”), including with respect to certain real estate transactions.  In concurrence with the majority, Judge Abudu wrote that the plaintiffs also showed a substantial likelihood of success on their argument that Florida’s law violates the Equal Protection Clause of the Fourteenth Amendment to the U.S. Constitution.Continue Reading U.S. Circuit Court Finds that Florida Law Prohibiting Foreign Ownership of U.S. Land Likely Preempted by CFIUS Statute

On January 24, 2024, the European Commission (“EC”) adopted five initiatives as part of the European Economic Security Strategy unveiled in June 2023.[1]  The initiatives are aimed at bolstering the EU’s economic security interests.  Their main focus is a proposal for a new EU FDI Screening Regulation aimed at inbound investments.[2]  But the package also includes a white paper on outbound investment control (the “White Paper”),[3] launching a debate on whether and how to scrutinize investment outflows from the EU for the first time in the Union’s history.Continue Reading EU Takes Time to Ready Outbound Investment Control Toolkit

The following post was originally included as part of our recently published memorandum “Selected Issues for Boards of Directors in 2024”.

In 2024, boards of directors face a well-established, complex and active global foreign direct investment (FDI) landscape in which transactions will regularly trigger multijurisdictional FDI filing and approval processes.  This is the case not only with respect to well-known FDI review regimes such as the Committee on Foreign Investment in the United States (CFIUS), but also with newly established, modified, and/or expanded non-U.S. FDI review regimes, particularly in Europe.  Indeed, as governments around the world have become increasingly empowered and willing to scrutinize, and in some cases prevent, transactions they deem objectionable, FDI approvals have become a significant regulatory issue for many cross-border transactions.Continue Reading FDI Review Regimes are Well-Established and Active; Outbound Investment Regimes are on the Horizon