ZWeR 2024, 103
Commission Calling: “Call-in” of transactions under the Foreign Subsidies Regulations – uncertainty and unpredictable risks?
Focusing on the Commission’s power to call-in transactions prior to their implementation, this article explores the broad prerequisites provided for in Art. 21 (5) FSR and the far-reaching consequences for parties involved in transactions which do not exceed the relevant FSR thresholds.
Contents
- I. Introduction
- II. M&A under the FSR
- III. Call-in right under the FSR
- 1. Significant impact on deal certainty
- 2. Transactions in scope of the call-in right
- 2.1 Not yet implemented concentration
- 2.2 Suspicion that foreign subsidies were granted in the three years prior to the concentration
- 3. What is likely to trigger the Commission’s discretionary powers?
- IV. Call-in rights in merger control and FDI screening regimes
- 1. Merger control
- 1.1 Recent developments in EU merger control – Illumina/Grail
- 1.2 Overview: call-in rights in EU Member States
- 2. Foreign direct investment screening regime in Germany
- V. Practical implications for undertakings
- 1. Preparation is key
- 2. Seek early guidance from the Commission
- 3. Address risks in transaction documents
- VI. Outlook
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- *)Dr. iur., Partner at Freshfields Bruckhaus Deringer, München
- **
- **)Associate at Freshfields Bruckhaus Deringer, BerlinThis article reflects solely their personal opinion. The authors would like to thank Julius Kliemann and Mónica Cabeza de Vaca for their valuable assistance.
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