From start-up to IPO

17 Oct - 19 Oct 2021

Session information

M&A and politics: two incompatible worlds? How to steer M&A in an increased political environment

Description

In the current environment, it is almost impossible to carry out an M&A transaction without having to deal, in one way or the other, with political aspects that may interfere or facilitate such transactions. This session will aim at addressing these two most common illustrations of government interaction with M&A execution:

Political interference:
• Foreign Direct Investment (FDI) regime: while activism from government authorities has increased substantially during the past few years, their ability to handle submissions expeditiously has not developed in synch. This has resulted in prolonged periods between signing and closing and increased unpredictability as to ultimate outcomes. In particular, this is true to new processes around FDI approvals. We will focus in this section on how to handle this uncertainty in practice and contractually, for example, through case studies.
• Other types of intervention: in certain situations where either FDI regime does not exist or is not applicable, governments have used other tools to control, and sometimes repel, foreign investments in their country.

Political facilitation:
• Governments acting as investors: we will address how States endorse the role of investor to make a venture capital type of investment or acquire minority investments to support certain sectors of the economy for a wide variety of motives.
• Government acting as actors: in certain situations, States will go as far as to nationalise certain companies. This has been a constant feature of governmental intervention in the economy, and this part of the session will focus on how nationalisations has evolved in recent years on a global scale and will identify general trends.

Session / Workshop Chair(s)

Isabella Ramsay Mannheimer Swartling, Stockholm, Sweden; Secretary, Corporate Governance and Activism Subcommittee
Jean-Claude Rivalland Publications Officer, Corporate and M&A Law Committee

Speakers

Mziwandile Ezra Clavis Davids Bowmans, Johannesburg, South Africa; Vice Chair, Private Equity Subcommittee
Nanette Heide Duane Morris, New York, New York, USA; Vice Chair, Corporate and M&A Law Committee
Richard Pepper Macfarlanes LLP, Brussels, Belgium
Angela Wang DP World FZE, Dubai, United Arab Emirates