K&L Gates Belgium’s Post

The #EU's Foreign Subsidies Regulation (#FSR) has left its mark on the first M&A deal to be investigated in-depth by the #European #Commission (#EC) under the FSR rules. The #foreign #subsidies: This case involved the acquisition of PPF Telecom Group B.V. (PPF), an EU telecoms operator, by the Emirates Telecommunications Group Company PJSC (e&), a UAE company benefitting from foreign subsidies. These subsidies comprised of an unlimited #State #guarantee, as well as various #grants, #loans and other #debt_instruments granted by the #UAE. The EC found that these foreign subsidies could potentially lead to distortions of #competition in the #EU #internal #market post transaction. The #commitments: The transaction was only conditionally approved subject to wide-ranging commitments designed to remove the distortive effects of the foreign subsidies, including the requirement that all transactions between PPF and e& have to be on market terms. Crucially, the commitments require that e& informs the EC of any future acquisitions that do not fall within the FSR notification thresholds, practically making each #acquisition by e& subject to the EC’s prior approval. In the below article, together with my colleagues Max Seuster, Michalis Papachristodoulou as well as Isabelle Rahman, Charles Sauvage and I analyse this important milestone in the #enforcement of the #FSR and identify the implications of this decision for future acquisitions involving problematic and high-risk foreign subsidies. #Brussels #antitrust #stateaid #competition #mergers #acquisitions #investments #EU Reed Smith LLP

𝐋𝐞𝐠𝐚𝐥 𝐏𝐞𝐫𝐬𝐩𝐞𝐜𝐭𝐢𝐯𝐞 𝐨𝐧 𝐌&𝐀 𝐢𝐧 𝐕𝐢𝐞𝐭𝐧𝐚𝐦: 𝐀𝐧 𝐄𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞 𝐅𝐮𝐧𝐝𝐫𝐚𝐢𝐬𝐢𝐧𝐠 𝐓𝐨𝐨𝐥 𝐢𝐧 𝐭𝐡𝐞 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐑𝐞𝐜𝐨𝐯𝐞𝐫𝐲 𝐏𝐡𝐚𝐬𝐞. At the Vietnam Mergers and Acquisitions Forum 2024 (M&A Vietnam Forum 2024), Deputy Minister of Planning and Investment, Nguyen Duc Tam, emphasized that M&A (Mergers and Acquisitions) is not only an effective tool for raising capital but also plays a positive role in restructuring the economy, innovating growth models, and privatizing state-owned enterprises. M&A is increasingly becoming an integral part of Vietnam’s economic development strategy. Read more: https://lnkd.in/gejiU6vS #ASLLAW, #VietnamLawFirm, #LawFirmInVietnam, #DoingBusinessInVietnam, #ASL, #HanoiLawFirm, #HoChiMinhLawFirm, #MAasfundraisingtoolinVietnamseconomicrecoveryphase.

The EU's Foreign Subsidies Regulation (FSR) has left its mark on the first M&A deal to be investigated in-depth by the European Commission (EC) under the #FSR rules. 𝗧𝗵𝗲 𝗳𝗼𝗿𝗲𝗶𝗴𝗻 𝘀𝘂𝗯𝘀𝗶𝗱𝗶𝗲𝘀: This case involved the acquisition of PPF Telecom Group B.V. (PPF), an EU telecoms operator, by the Emirates Telecommunications Group Company PJSC (e&), a UAE company benefitting from foreign #subsidies. These subsidies comprised of an unlimited State guarantee, as well as various grants, loans and other debt instruments granted by the UAE. The EC found that these foreign subsidies could potentially lead to distortions of #competition in the #EU internal market post transaction. 𝗧𝗵𝗲 𝗰𝗼𝗺𝗺𝗶𝘁𝗺𝗲𝗻𝘁𝘀: The transaction was only conditionally approved subject to wide-ranging commitments designed to remove the distortive effects of the foreign subsidies, including the requirement that all transactions between PPF and e& have to be on market terms. Crucially, the commitments require that e& informs the EC of any future acquisitions that do not fall within the FSR notification thresholds, practically making each #acquisition by e& subject to the EC’s prior approval. In the below article, my colleagues Christian Filippitsch, Max Seuster, Isabelle Rahman, Charles Sauvage and I analyse this important milestone in the enforcement of the FSR and identify the implications of this decision for future acquisitions involving problematic and high-risk foreign subsidies. #mergers #antitrust #brussels #eulaw

🔥 Hot off the press: our new client guide on information gathering required by the Foreign Subsidies Regulation (FSR) in the context of M&A transactions.   Since October 2023, the FSR requires M&A transactions to be notified to the European Commission if they meet certain thresholds, and parties cannot implement notified deals before receiving approval from the Commission.   Although the FSR aims to address foreign subsidies distorting the internal market, the notification obligation hinges on foreign financial contributions (FFCs) from non-EU countries to the parties involved in a transaction. It's important to note that the concept of FFCs is significantly broader in scope than foreign subsidies. Our client guide provides detailed, step-by-step instructions on gathering the necessary FFC data, ensuring you stay on top of the process!   Bart de Rijke, Helen Gornall, Stephanie The #ForeignSubsidiesRegulation #FSR #ForeignFinancialContributions #EuropeanCommission #Mergers #Acquisitions #JointVentures #Internalmarket  

In this first article of the "What Every Multinational Company Should Know About... International Mergers & Acquisitions" series, my Foley colleagues provide tips and best practices for conducting comprehensive due diligence and identifying international regulatory risk in deals. Click below to read more. #International #Acquisition

In this first article of the "What Every Multinational Company Should Know About... International Mergers & Acquisitions" series, my Foley colleagues provide tips and best practices for conducting comprehensive due diligence and identifying international regulatory risk in deals. Click below to read more. #International #Acquisition

In this first article of the "What Every Multinational Company Should Know About... International Mergers & Acquisitions" series, my Foley colleagues provide tips and best practices for conducting comprehensive due diligence and identifying international regulatory risk in deals. Click below to read more. #International #Acquisition

In this first article of the "What Every Multinational Company Should Know About... International Mergers & Acquisitions" series, my Foley colleagues provide tips and best practices for conducting comprehensive due diligence and identifying international regulatory risk in deals. Click below to read more. #International #Acquisition

In this first article of the "What Every Multinational Company Should Know About... International Mergers & Acquisitions" series, my Foley colleagues provide tips and best practices for conducting comprehensive due diligence and identifying international regulatory risk in deals. Click below to read more. #International #Acquisition

In this first article of the "What Every Multinational Company Should Know About... International Mergers & Acquisitions" series, my Foley colleagues provide tips and best practices for conducting comprehensive due diligence and identifying international regulatory risk in deals. Click below to read more. #International #Acquisition