EU Merger Control: New EU Framework for Screening of Foreign Direct Investments

Sullivan & Cromwell LLP - September 18, 2017

In his State of the Union speech on September 13, 2017, Jean-Claude Juncker, President of the European Commission (“Commission”), announced a proposed Regulation establishing a framework for the screening of foreign direct investments into the European Union. The measure, which stops short of creating a formal EU mechanism for screening foreign takeovers, would allow the Commission to review and issue non-binding opinions on certain foreign investments of “Union interest.” While highlighting the Union’s “open investment environment,” the Commission’s proposal attempts to establish a framework to promote closer cooperation among EU Member States reviewing foreign investments on a national level – without prejudice to the Member States’ exclusive competence for the maintenance of national security.