Much like the United States’ Committee on Foreign Investment in the U.S. (CFIUS), the Act crafts a robust regulatory framework aimed at foreign investment in the name of U.K. national security and provides that the government will consider the target risk, the triggering event’s risk, and the acquirer’s risk. Yet it differs and surpasses its American equivalent in several ways.
The United Kingdom (U.K.) government passed the National Security and Investment Act of 2021 (the Act) on April 29 through Royal Assent. Although the Act will not take effect until later this year, transactions dating back to November 12, 2020 can now be subject to review. With this new regulatory framework on the horizon, both U.K. and foreign investors should tread carefully.