Key Takeaways The EU institutions have reached political agreement on a new regulation or foreign subsidies regime (the “FSR”) that will allow the European Commission (“EC”) to review the effects of non-EU government subsidies given to businesses active in the EU and remedy any possible distortive effects. This marks a decisive step towards the formal adoption of this novel and far-reaching legislative tool. First announced in May 2021, the FSR is likely to be adopted later this year and to take effect by mid-2023. The FSR establishes mandatory notification regimes for businesses that have received financial contributions from a non-EU government when participating in certain mergers or public tenders. As such it will create a third regulatory hurdle for some M&A transactions. In
The EU Commission welcomes political agreement reached between the Parliament and Member States on Foreign Subsidies Regulation
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