The entry of the Chinese freight service provider Cosco at a Hamburg port terminal was controversial – and would probably also have been a case for the new EU regulation.
(Photo: dpa)
The situation in the mergers and acquisitions (M&A) market is already difficult, but now another problem has arisen. The legal hurdles for cross-border deals are increasing. The new EU regulation on third-country subsidies (GDPR) applies to all deals signed after July 12 and completed after October 12.
Experts expect that this will make transactions more complicated and lengthy. In view of geopolitical uncertainties and a weak economic environment, mergers and acquisitions are not going smoothly anyway.
“The basic idea of the EU Commission is correct. If we ban state aid in principle within the EU, we should at least be able to control the impact of foreign subsidies from outside the EU. Especially when it comes to company acquisitions by foreign state-owned companies, there is now a new instrument with the GDPR,” says Dimitri Slobodenjuk, partner at Clifford Chance law firm.
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