National security investment clearances: what dealmakers need to know

Author: IFLR Correspondent | Published: 5 Mar 2019

While many dealmakers focused on developments relating to the Committee on Foreign Investment in the United States (Cfius) - the primary US national security investment clearance regime - 2018 was also a monumental year in the development of analogous national security investment clearance regimes around the world.

The EU made substantial progress in obtaining the necessary political approvals for the first-ever, EU-wide mechanism to review inbound foreign investment on national security grounds, which will become effective in April 2019. Separately, each of Germany, France, the UK, Russia, China, and the US adopted new and different measures to scrutinise foreign direct investment (FDI) more closely. Several countries’ national security regulators prohibited transactions from proceeding; in others, transaction parties walked away from deals upon being notified of regulatory opposition due to perceived national security risks.

We summarise below three noteworthy themes shared across various national security review processes that we anticipate will continue to...