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
On 24 September 2024, the European Commission issued its first in-depth decision under the Foreign Subsidies Regulation (FSR), providing insights into its application. In their latest alert, Christian Filippitsch, Max Seuster, Michalis Papachristodoulou, Isabelle Rahman and Charles Sauvage delve deeper into this milestone decision and explore its implications. #competition #mergers #acquisitions #FSR #commission
