Please indicate whether there is a foreign direct investment review regime in your jurisdiction in relation to mergers involving foreign buyers / acquirers and kindly indicate the relevant review/regulatory body? If there is, please indicate whether there have been any foreign direct investment notifications to date. If there is no foreign direct investment regime, kindly indicate whether there are any plans announced to introduce it.
Mergers and acquisitions involving foreign buyers may be subject to competition control clearance, in light of the company concentration provisions included in the Competition Act.
If the acquired or merged company is a party to a foreign direct investment agreement (i.e., an “Establishment Convention”, as per local designation), it must be confirmed whether the agreement contains provisions regarding change of control, or requires governmental approval.
The foreign direct investment regime is set forth in Law No. 13/VIII/2012, of 11 July 2012 (as amended) and in Decree-Law No. 42/2015, of 27 August 2015.
If there is a foreign direct investment regime in your jurisdiction, please indicate whether it applies to all sectors or specific sectors (such as sectors considered to relate to ‘national security’).
A fast-track foreign direct investment regime applies to investments up to 5 million CVE (approx. USD 48,954), but excludes those in the financial sector and those made by investors whose capital is at least 50% owned in by foreign States.