The scope of FDI screening has also widened in recent years. Not only archetypical topics such as critical infrastructure (seaports, airports and nuclear energy) and goods for military purposes are included. More and more important technologies (such as specialised semiconductors or software for payment systems) are subject to FDI screening.
Without a clear strategy at the outset of the transaction, the processes surrounding FDI screening can lead to unexpected delays or have an unforeseen impact on the target company’s activities. Without a clear view at an early stage of the FDI screening requirements that may be expected, negotiating on how to allocate the associated risks cannot be properly conducted . Adequate and timely preparation is therefore essential and requires a good understanding of the activities of the buyer and the target company. In addition, an excellent network of FDI experts in the various jurisdictions in which a target company operates is necessary to explore the strategic options available.
Houthoff assists its clients (both buy-side and sell-side) in identifying the risks, developing a strategy, and assisting in FDI notification procedures. Houthoff works with the best advisers on this subject in the relevant jurisdictions when needed.