EU Foreign Subsidies Regulation

As of July 12, 2023, the Foreign Subsidies Regulation ("FSR"), which has been eagerly awaited by M&A practitioners in particular, will largely take effect.

The presentation linked summarizes the key provisions.

In essence:

• Under the FSR, M&A transactions may be subject to a notification requirement if the companies involved have received financial contributions from third countries totaling EUR 50 million (i.e., for example, for the acquirer and target company together) in the three years prior to the acquisition. Clearance by the Commission constitutes a statutory closing condition.

• Public procurement procedures with an estimated contract value of EUR 250 million or more must be notified before the contract is awarded if the bidder has received financial contributions of at least EUR 4 million per third country in the three years preceding the notification.