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Foreign investment monitor

Issue 4
May 2022

FI Monitor Issue 4, 2022

Welcome to our fourth Foreign investment monitor

In this edition we explore five key issues in the fast-changing world of foreign investment screening.

First, we take a deep dive into the UK’s new national security regime and share what we have learnt four months on from its launch. Our teams explore the practicalities of the notification process and how the government’s Investment Security Unit is handling filings; what transactions are within scope; and the penalties for failing to notify.

Our next piece looks at semiconductors, a highly coveted technology that is also heavily protected by governments. We examine two key pieces of chip-related legislation recently introduced in the US and the EU, and outline how foreign investment rules are being used to limit overseas investment in semiconductor assets.

Elsewhere, we ask whether member states using their own foreign investment laws to block inbound investment from other EU countries breaches EU law; explain why financial sponsors need to be careful about the identity of their limited partners; and consider whether moves by the US government to limit domestic companies’ Chinese investments could spread to other jurisdictions.

As ever, we hope you enjoy our analysis. If you would like to discuss any FDI issue in more detail we would be delighted to arrange a meeting, and we would also love to hear your ideas on how to improve the monitor.

Essential Foreign Investment Podcast #4: Expanding areas of global regulation.