EU Adopts Reporting Requirements For Transactions And Public Bids Under The Foreign Subsidies Regulation

In Short

The Situation: On July 10, 2023, the European Commission ("EC") adopted the Implementing Regulation ("IR") and the corresponding notification forms (Form FS-CO and Form FS-PP), which specify the information and documents companies will need to disclose as part of notifications under the Foreign Subsidies Regulation ("FSR").

The Background: The FSR is a new regulatory regime requiring prenotification of certain large M&A transactions and public bids involving companies that receive subsidies from governments outside the European Union. Under the FSR, a company cannot close such a deal or receive a bid award until it receives clearance from the EC.

Looking Ahead: The business community will need to factor in the additional regulatory hurdle of the FSR in the evaluation of deal risks and consider whether a notification affects their closing or ability to participate in public tenders. Companies that engage in M&A activities, or have sales to government