National Security Investment Screening
If your transaction might be affected by the national security and investment regime, we can advise on the particular risks and help you to navigate the clearance process.
For many years, the UK government has assessed foreign investments in UK companies, and stopped those that might be damaging to national security. The legal environment around this became more complex and formalised in January 2022, with the advent of the National Security and Investment Act 2021.
The UK government now has much greater scope for intervention. There are mandatory requirements for pre-notification and clearance for various types of corporate transactions in 17 key sectors of the economy, including transport, energy, advanced robotics, cryptographic authentication and synthetic biology.
Non-compliance can lead to significant sanctions, including large fines and even imprisonment. Closing a transaction without receiving a required clearance is now a criminal offence, and the deal will be considered legally void. The new rules are additional to the existing merger control requirements, so in many cases an extra regulatory filing is now needed.
We can help you to determine the risks faced by your transaction and other commercial activity, and guide you through the process of obtaining clearance.
A comprehensive service
We offer investment screening support as a stand-alone service or as part of a package that includes advice on merger control and wider regulatory issues.
As well as providing practical advice on how your deal might be affected, completing due diligence, and developing response strategies, we can also help you to successfully navigate the process of notifying the UK government and obtaining clearance. For example, in transactions for which the parties are not obliged to notify, they can choose to do so voluntarily. This may be an effective way to reduce risk.
We have done this for a range of clients across the energy, commercial property and technology sectors.
Our expertise includes:
- Assessing whether notification of a proposed transaction is necessary under the National Security and Investment Act 2021
- Submitting notifications and handling all communications with the UK government to obtain clearance
- Practical guidance on the risks faced by a particular transaction
- Carrying out due diligence
- Comprehensive advice that also includes merger control and wider regulatory requirements
Meet our key contacts
Jamie McRorie
Partner
Related articles and insights: National Security Investment Screening
9 May 2024
Government sets out next steps for the National Security and Investment Act system
Contributors:
John Morrison, Christina Sinclair
Contact us
Jamie McRorie
Partner
