The boundary between defence and non-defence businesses is increasingly blurred. Early specialist legal advice on classification is no longer a precaution; it's a deal necessity.

Expect a wider and faster-moving market, with more buyers, more capital and more competition for assets.

Expect sustained and significant government demand across the globe, creating real commercial opportunity.

Defence deals may benefit from greater scope for clearance, but the potential use of specific EU law rules for defence M&A, such as Article 346 TFEU (protection of essential security interests) and national merger review call-in powers (allowing authorities to review transactions which fall below the normal filing thresholds), require early strategic planning.

Early and detailed diligence is essential to map possible FDI and national security screening reviews and assess any related execution risks. 

Consider the application of the Foreign Subsidies Regulation at an early stage.

Verify procurement compliance early, as contracts awarded in breach of the rules are vulnerable to challenge and annulment by unsuccessful bidders.

Consideration of general competition law rules must be built into deal and JV planning and execution from the outset.