Foreign direct investment (FDI) and national security screening is now a central feature of global M&A deals. As geopolitical and trade tensions rise, governments are increasingly focused on protecting critical technologies and strategic capabilities.

In this briefing, we examine how review timelines are lengthening, more deals are subject to remedies, and some are being blocked altogether – even those involving traditionally friendly jurisdictions. We also look at the evolving regulatory landscape, from new screening regimes and the EU’s updated framework to an evolving US approach to the Committee on Foreign Investment in the United States (CFIUS) and outbound investment controls.

Key takeaways

• Governments are applying greater scrutiny to investments involving critical technologies, supply chains and strategic assets, making FDI screening increasingly important in cross-border deals.
• Longer review timelines, expanding regulatory regimes and growing political intervention are making cross-border transactions more complex, uncertain and resource-intensive.
• Investors must assess foreign investment and national security risks at the outset of a transaction and determine how best to mitigate them.