Introduces a new notification system for M&As involving parties that have received subsidies from a third country
12 Jan 2023
On 23 December 2022, the European Parliament and the Council of the European Union passed Regulation (EU) 2022/2560 on foreign subsidies distorting the internal market, which includes a new notification system for mergers and acquisitions involving parties that have received subsidies from a third country. Under the regulation, mergers and acquisitions must be reported to the EU Commission if the acquired or merging companies are based in the EU, generate at least EUR 500 million in aggregate turnover in the EU, and have received more than EUR 50 million in aggregate financial contributions from third countries in the three calendar years prior to the transaction. During the first phase of the notification process, the EU Commission will evaluate whether the financial contributions distort the internal market, and if concerns persist, the EU Commission may prohibit the transaction. Parties to the transaction can also provide comments to address concerns. Mergers and acquisitions that are notifiable may not be implemented before approval of the EU Commission has been obtained. The regulation entered into force on 12 January 2023 and will start to apply on 12 July 2023.The above mentioned requirement to report merger and acquisition transactions involving entities that received foreign financial contributions becomes effective on 12 of October 2023.
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Entry and establishment (Approval and admission)
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Treatment and operation (Competition policy)
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