The Merger Control Review provides an incisive overview and analysis of the pre-merger competition and notification regimes across key jurisdictions worldwide, as well as a discussion of recent decisions, strategic considerations and likely upcoming developments.
A key trend continued to be the tightening of the FDI control regime from the standpoint of both deals control review and enforcement. M&A transactions that include foreign companies tend to fall under the scope of the FDI regime according to the Foreign Investments Law, which covers transactions in sensitive industries more widely. Therefore, if there are potential red flags, a foreign company should anticipate a 12-month period for regulatory clearance in Russia. Red flag transactions include those:
- with significance to the Russian economy (e.g., national projects, the sole company in a town, dominant market players);
- concerning the last Russian supplier among foreign suppliers;
- involving civil production that could be employed for military purposes; and
- involving the acquisition of a non-controlling stake in Russian strategic companies.
Another continuing trend is the FAS commencing high-profile cases challenging M&A transactions on the grounds of violation of the Strategic Investments Law.
Please follow the link to find the full text of the Russia chapter in The Merger Control Review – Edition 13.