Control of foreign investment in the Defence sector
Foreign Direct Investment (FDI) regulation is an area of
increasing activity and enforcement worldwide. Notwithstanding the
potential benefits of inward investment, sensitivities can arise
from geopolitical considerations, especially given heightened
international tensions, and from concerns around ownership and
control of strategic industrial capabilities and the desire to keep
these 'onshore'. Globally, FDI regimes have tended towards
broadening scope, with the result that it is not just outright
acquisitions but also minority investments that can be affected,
even where the interests acquired do not confer control over the
target business or its assets. Similarly, the range of industries
within the scope of these regimes can be extensive.