Introduction of the new Rules
The revised rules of the Foreign Trade and Payments Ordinance (Außenwirtschaftsverordnung or AWV) further extend the competences of the Federal Ministry for Economic Affairs and Energy, which is the governmental body responsible for FDI control. The new rules can be traced back to the joint initiative of Germany, France and Italy who championed amendments to the European legal framework for FDI to protect its key industries from controversial acquisitions by foreign-backed investors. The new amendment further implements the EU-Screening Regulation (Regulation (EU) 2019/452). The new rules entered into force shortly after its adoption, on 1 May 2021.
In essence, there are three material additions to the Government’s toolbox to block transactions that may harm national interests:
© 2022 Mayer Brown. All rights reserved.
Mayer Brown is a global service provider comprising associated legal practice that are separate entities, including Mayer Brown LLP (Illinois, USA), Mayer Brown International LLP (England), Mayer Brown (a Hong Kong partnership) and Tauil & Chequer Advogados (a Brazilian law partnership) (collectively the “Mayer Brown Practices”) and non-legal service providers, which provide consultancy services (the “Mayer Brown Consultancies”). The Mayer Brown Practices and Mayer Brown Consultancies are established in various jurisdictions and may be a legal person or a partnership. Details of the individual Mayer Brown Practices and Mayer Brown Consultancies can be found in the Legal Notices section of our website.
“Mayer Brown” and the Mayer Brown logo are trademarks of Mayer Brown.
Attorney Advertising. Prior results do not guarantee a similar outcome.
“Mayer Brown” and the Mayer Brown logo are trademarks of Mayer Brown.
Attorney Advertising. Prior results do not guarantee a similar outcome.