As of 2023, mergers and acquisitions (M&A) transactions will be subject to three separate clearance regimes in the EU (merger control, foreign subsidies, and foreign direct investments [FDI]). Amendments to the EU FDI screening framework should seek to minimise burdens for transactions subject to multiple clearances by aligning FDI and merger control timelines, authorities and procedures. Likewise, they must drive the maturity of FDI screening in the EU by aligning and coordinating national FDI screening processes with stronger due process rules, stricter defence of fundamental freedoms amidst national security concerns and clearer jurisdictional tests and notification requirements.
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