11 September 2023

Application of the law on a national screening mechanism for foreign direct investments in Luxembourg

On 18 July 2023, the Luxembourg law on foreign direct investment screenings (the “FDI Law”) implementing the Regulation (EU) 2019/452 on foreign direct investment screening (“FDI Regulation”) has been published in the Luxembourg Official Journal.

The FDI Law marks a shift in the legal framework of the acquisition of companies in Luxembourg, following in the footsteps of Regulation (EU) 2022/2560 on foreign subsidies. The FDI Law introduces a national screening procedure for direct investments made by investors from a third country outside the EU/EEA seeking to gain control of Luxembourg entities operating in activities considered critical for national security or public order.

The new regime applies to all transactions in the scope of the FDI Law which have not been completed before 1 September 2023.

The GSK Update provides further insights.


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Beate Dünschede
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