On December 23, 2022, Regulation (EU) 2022/2560 of December 14, 2022 on international subsidies distorting the interior 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 international direct funding screening. The FSR’s affect can’t be overstated because it introduces two obligatory pre-closing submitting regimes and it offers the Fee wide-reaching ex officio investigative and intervention powers. Quickly, the Fee will even launch a public session on a draft implementing regulation that ought to additional element and make clear quite a lot 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 begin getting ready for the applying of the FSR. We confer 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 confer with our December 8, 2022 webinar on the FSR. Given the significance of the FSR, we are going to proceed to report any future developments.