Mandates obligatory notification of direct and indirect acquisition of critical energy infrastructure

Effective from 1 January 2024, the Energy Act of Czechia mandates that any direct or indirect acquisition involving elements of critical energy infrastructure must be notified to the Ministry of Industry and Trade. This applies when the acquisition reaches 10 per cent or more of shares or voting rights, or grants a level of control over decision-making processes, such as a board seat or access to sensitive information affecting the energy sector's security. All investors, including domestic ones, are subject to this rule, marking a significant shift from the Czech FDI screening regime that primarily focused on non-European Union entities. The acquisition requires a pre-transaction notification with a standstill period until clearance. If the transaction is prohibited the Government of Czechia have a right to acquire the shares or assets at a standard price. Furthermore, transactions that are not notified may result in the invalidation of voting rights and the annulment of asset disposals.

• Type:

  • Entry and establishment (Approval and admission)

• Industry:

  • Services (Electricity, gas, steam and air conditioning supply)

• Sources:

  • E-sbirka.cz, Act No. 465/2023 Coll. Act amending Act No. 416/2009 Coll., on Accelerating the Construction of Transport, Water and Energy Infrastructure and Electronic Communications Infrastructure (Line Act), as a, https://www.e-sbirka.cz/sb/2023/465?zalozka=text, 29 Dec 2023
  • lexology.com, New notification obligation for Czech energy sector transactions, https://www.lexology.com/library/detail.aspx?g=4691f33c-5044-4b5a-b69f-ecfb0458b04f&utm_source=Lexology+Daily+Newsfeed&utm_medium=HTML+email+-+Body+-+General+section&utm_campaign=Lexology+subscriber+daily+feed&utm_content=Lexology+Daily+Newsfeed+2024-02-01&utm_term=, 31 Jan 2024