Foreign Investment and National Security

Foreign investment screening has become a key area of focus in recent years, with governments keen to safeguard strategic industries that are crucial for national security, economic stability, and public safety. Several countries have introduced or significantly expanded their screening regimes, broadening the scope of investments subject to mandatory reviews.

Depending on the jurisdiction, reviews may cover direct and indirect stakes, minority investments, acquisitions of assets, real estate transactions and joint ventures, among others. Technologies such as AI, data infrastructure, quantum computing and semiconductors, have joined traditional sectors for screening such as defence and energy. This growth in screening regimes means that many transactions are now subject to reviews in multiple countries.

We have strength in complex multijurisdictional transactions and are regularly called upon to advise on foreign investment approvals around the world. Our experience includes advising on several complex transactions which have required in-depth investigations and undertakings to secure clearance. Our expertise in this area led to our partners being invited by the UK Parliament to provide expert witness support in relation to the development of the UK’s National Security & Investment (NS&I) Act.

KEY EXPERIENCE

We advised an energy storage owner-operator on the NS&I Act process in respect of its application for a licence in respect of a battery storage system in the UK.

We advised International Distribution Services (IDS), the parent company of the UK’s Royal Mail and international parcels network GLS, on the foreign investment and merger control aspects of EP Group’s takeover of IDS. We coordinated the foreign investment proposals in several jurisdictions around the world, including the conditional clearance from the UK government under the NS&I Act.

We advised Meggitt, an aerospace and defence group, in relation to the global foreign investment and merger control aspects of its acquisition by US technology company Parker Hannifin. In the UK, the transaction was cleared by the government subject to certain undertakings to address national security concerns.

We advised Ultra Electronics, an aerospace and defence group, in relation to the global foreign investment and merger control aspects of its acquisition by Cobham. In the UK, the transaction was cleared by the government subject to certain undertakings to address national security concerns.

We advised Vodafone on the national security and merger control clearances for its £15 billion joint venture with Three UK, a deal which created the UK’s largest mobile network operator. The transaction was cleared subject to certain conditions by the UK government following a detailed national security assessment under the NS&I Act.