Foreign Direct Investment

Why Cooley

A growing number of regions have adopted new regulations on foreign investment – which means companies and investors need to consider all potential foreign investment regimes at the inception of a transaction. Cooley’s FDI team is uniquely positioned to help clients spot potential foreign investment risks and develop mitigation strategies to stay ahead of the curve.

Foreign investment screening rules vary significantly by jurisdiction and are constantly evolving. Some regimes require a mandatory notification, whereas others rely on voluntary filings and the use of “call-in” powers. Additionally, screening of foreign investments has evolved from the traditional sectors of military and defense to the protection of critical technologies and infrastructure, resulting in more transactions subject to regulatory scrutiny. With the rise of geopolitical tensions and profound technological shifts, governments globally are seeking to introduce strong investment control measures to prevent technological leakage – and to keep national companies and critical assets from being the subject of potential hostile acquisition – while remaining open to investment and international cooperation. In addition, FDI regimes are routinely updated to take account of evolving risks to national security and public order.

Our top-ranked lawyers keep abreast of this shifting landscape so you can focus on your investment goals. The team draws on the extensive experience of Cooley’s exceptional global antitrust practice, which has developed strong relations with experienced local counsel and national regulators to provide truly global solutions to our clients. The team also collaborates closely with Cooley’s national security practice, which helps US and foreign companies manage complex issues related to the Committee on Foreign Investment in the United States (CFIUS).

Cooley’s FDI team is part of our CooleyREG offering, through which we combine an understanding of the impact of disruptive advancements – and the regulatory issues that impose risk and slow progress – to help our clients navigate an increasingly complex regulatory landscape.

Areas of practice

The group advises clients at every stage of a transaction, including:

• Conducting early due diligence to determine whether FDI filings are in scope
• Structuring transactions and deal planning
• Negotiating contractual terms to mitigate risk exposure
• Preparing cross-border notifications
• Engaging with regulators to ensure timely filings and approvals
• Assisting with compliance requirements

Representative matters

• Notified a national regulator in respect of the acquisition of a minority stake of a company active in a sensitive sector
• Advised an international client on the global risks associated with setting up a joint venture with a major Asia-based investor in the AI and pharmaceutical industries
• Advised a multinational client on the foreign investment risks of a transaction involving a major online platform operator