Foreign Investment Screening (FIS), also known as Foreign Direct Investment (FDI) control, has become a critical factor in mergers and acquisitions (M&A) across global markets. As governments tighten regulations to protect strategic sectors, investors must navigate complex legal frameworks to ensure compliance. This guide is designed to help investors, legal teams, corporate boards, and M&A professionals understand and navigate Foreign Investment Screening (FIS) in cross-border M&A transactions and provides a structured approach for businesses involved in these transactions, aiming to streamline the (Foreign Investment Screening) FIS process and reduce associated risks. It provides a comprehensive overview of the relevant national legislation, the scope of each national regime, the sectors aimed at, the highlights of the applicable procedure, the authorization criteria as well as the potential risks of non-compliance.

Foreign direct investment (FDI) screening is crucial for protecting national security, economic stability, and public order, particularly in sensitive or strategic sectors. FDI screening is critical as it protects a nation’s security interests, economic stability, and strategic autonomy by carefully managing foreign access to critical industries. It impacts foreign investors, domestic companies in regulated sectors, and government agencies tasked with national security and economic oversight.

This region-specific guide contains all the relevant information required to assist with this process. In addition to the applicable legislation, it identifies what types of transactions and investors are subject to FDI screening. It lists sensitive and particularly sensitive activities and the broad categories these fall under. It also sets out the procedure and details the consequences of non-compliance.

Useful for:

  • Investors and businesses involved in cross-border M&A
  • Legal advisors focusing on FDI compliance
  • Corporate boards making decisions about investments in FDI-regulated sectors
  • M&A professionals managing deal risk in FDI-screened transactions